Porsche Plans to Significantly Reduce Presence in Battery Subsidiary

Porsche, the renowned German automobile manufacturer, has announced the closure of its battery cell subsidiary, Cellforce. The decision, which comes after a series of challenges and rising costs, is a significant step for the VW subsidiary.

The end of Cellforce was initially announced at the end of April, with Porsche deciding not to continue operating the battery cell subsidiary independently. Since then, the new owner of Cellforce has not been explicitly named, but it is clear that Porsche is exiting the battery cell production business.

The closure of Cellforce is expected to result in job losses, with around 200 jobs at risk. A mass layoff notice has been filed with the responsible employment agency in Reutlingen. Production was originally planned for Tübingen, but legal hurdles prevented this.

Porsche CEO Oliver Blume informed the green-black state government about the plan. The exact amount that has flowed from public funds to support Cellforce is initially unclear, but around 60 million euros has been announced.

Investors were sought until recently for Cellforce, and Porsche announced its entry into the production of high-performance battery cells in the summer of 2021. However, the write-offs on the production facilities of Cellforce are estimated to cost Porsche 295 million euros.

Despite the closure of Cellforce, a small unit for research and development may remain at Cellforce's location in Kirchentellinsfurt, Swabia. Porsche is instead considering diversifying into defense and security technology sectors, reflecting a strategic realignment away from battery production.

Defense companies are said to be interested in the parts of Cellforce to develop batteries for military drones. However, many Cellforce employees could face unemployment as there is no employment guarantee there.

Michael Steiner, Porsche's development board member, is scheduled to speak at the general assembly scheduled for Cellforce employees on Monday. The assembly is expected to provide more details about the closure and the future of the affected employees.

Porsche has been investing in new internal combustion engines since the beginning of the year, indicating a shift in focus towards traditional automobile production. The company currently has around 280 employees.

This news marks a significant change for Porsche, as it moves away from battery production and explores new opportunities in defense and security technology. The company's decision to close Cellforce and its strategic realignment are likely to have far-reaching implications for the automobile industry and beyond.