Porsche acquired Fazua in 2022 for the joint development of electric bicycles.
/ Porsche
Porsche has announced the closure of its electric bicycle division and e-bike propulsion systems. The company stated that this decision is driven by a renewed focus on its core business activities, as the electric mobility market—particularly in micromobility—has shifted. However, behind this announcement lies a more complex scenario.
The German automaker has decided to cut all external branches not directly tied to vehicle production, starting with electric bicycles, followed by subsidiaries developing data analytics software and communications, as well as high-performance battery cells. “The Executive Board and Supervisory Board of Dr. Ing. h.c. F. Porsche AG have agreed on far-reaching measures as part of the company’s strategic reorientation. The subsidiaries Porsche eBike Performance GmbH, Cellforce Group GmbH, and Cetitec GmbH will be closed,” the statement read.
However, the lifestyle line Porsche Design—featuring high-end watches, clothing, and accessories—remains active. It retains its customer base and profit margins, which, though not broken out in financial results, are typical for businesses blending licensing and premium retail.
Porsche watches.
/ Porsche
**Decline in China and During the Electric Transition**
While Porsche was a steady revenue generator for the Volkswagen Group for years—registering operating margins between 14% and 18% through 2024, with all models highly profitable and strong demand from markets like China and the United States—2025 and early 2026 have been less favorable. The operating margin at the end of 2025 stood at 1.1%, and profit fell from €5.637 billion to €413 million. These results, along with projections for 2026, have necessitated a strategic shift to ease the challenging transition to electric vehicles.
Two main factors are at play: Porsche’s electrification push has not yet yielded expected results, and the Chinese market has weakened, dropping 26% in 2025. While electrifying the Macan model has not produced poor sales figures—it now accounts for 50% of the model’s sales—it has not achieved the performance needed to offset declines in overall Porsche sales. Meanwhile, Chinese drivers have turned either to domestic brands (experienced in electric vehicles) or to other high-end combustion models.
In its announcement, CEO Michael Leiters acknowledged that the company must refocus on its core business. “That is the indispensable foundation for a successful strategic reorientation. This forces us to make painful cuts, including in our subsidiaries.” The statement also noted that more than 500 employees will be affected by these closures.