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Is the Taycan a Magic Bullet or a Thorn in Porsche's Side?

Not wanting to compare myself with purists, but I did have my reservations when Porsche decided to develop its first SUV, the Cayenne. Remember, back then a Porsche SUV was seen by most people as pure blasphemy.
Porsche Taycan 1 photo
Photo: Porsche
I wasn't exactly thrilled at the thought that one of my favorite old-school carmakers was simply throwing all that two-door sports car legacy away and jumping on a bandwagon that seemed like a transitory fad at the time: luxury SUVs.

History and more than one test drive with what was arguably the best SUV on the planet in Turbo S configuration, at least until recently, proved me wrong. The Cayenne not only overcame the naysayers but has also spawned a smaller SUV in the Porsche lineup and is the second-best-selling product from the Zuffenhausen, even though it's actually built in Leipzig.

Then came the Panamera, which to me seemed like an answer to a question nobody asked, especially when the first generation was unsightly-looking, to say the least, especially from the rear. Once again, a couple of test drives later, paired with the enormous success of the car proved me wrong.

Without the first-generation Panamera, our sight organs wouldn't be treated with gorgeous cars like its Sport Turismo version or its nemesis from Mercedes-AMG, the GT 4-Door Coupe. Nowadays Porsche is developing its third generation, which I venture to guess that will probably feature one of the most seductive designs for a four-door ever, Porsche or not.

Now that Porsche's first-ever modern EV is here, I can't help but let that seed of doubt emerge once again, only this time it's not related to its design at all since I find the Taycan to look absolutely ravishing.

No, my issue with the Porsche Taycan is strictly related to money, or Porsche's long-term survival to be more exact. You see, the Taycan is not just an all-new model, with no direct predecessor, for Porsche, it's also spearheading the largest investment that Porsche has ever put together for the launch of a single model.

Yes, I am aware that the Taycan will spawn a Cross Turismo version as well, and the R&D that went into that 800v electric architecture will trickle down to other models also, but until that time comes the only ROI is achieved by the sales of a single car.

We are talking about billions of euros since Porsche not only developed a new platform, which will be borrowed by Audi as well, but invested in a bespoke new factory in Zuffenhausen for the Taycan. In total, the carmaker has pumped 700 million euros in the new production facility alone and another 300 million into a new body shop at the site, albeit that will be used for the 911 also.

Besides all this, Porsche has also pledged to invest at least 6 billion euros more in its quest for electric mobility on a large scale. Just as an example, the next generation of the best-selling Macan will be purely electric.

I realize that most of these expenditures come as a consequence of the 2015 Paris agreement and the EU tightening CO2 emission limits until 2030, which will need to be reduced by a further 35 percent. The trouble is that it should be easy-peasy for a niche carmaker like Porsche since it's only active in very few segments, but then again I must remind you that we're talking about gargantuan investments.

On the plus side, Porsche is still one of the most profitable carmakers out there, but for that to continue the Taycan and its Cross Turismo derivative will need to become more than just a niche product and expand even more.

So far, the numbers look good. The Germans first targeted 20,000 Taycans for the first year of production, but interest in the electric vehicle was so overwhelming that they recently doubled that number to 40,000 units.

To put things into perspective, Porsche only sold a little over 35,000 nine-elevens in 2018, while the 718 Cayman and Boxster sold less than 25,000 units. That would make the Taycan the third best-selling Porsche after the Macan and Cayenne, so the Cross Turismo version should make it jump even higher in customer preference.

The math above makes my doubts sound like they come from a dirty old cynic's mind that wants all these electro-heads to get off his lawn, but I'm trying really hard not to sound like that. You see, Porsche isn't the only carmaker betting on an electric future these days and I fear that those 40,000 Taycan cars will distill to a lot less once everybody else arrives at the table.

Currently, the aging but feisty Tesla Model S is the only rival that the Taycan has to dethrone regarding premium electric sedans, but in a couple of years, it will have more than a share of competition, including from its own backyard.

Apart from cars like the Mercedes EQS, also built on a dedicated EV platform, Porsche's first modern electric car will also have to compete with the tri-motor Model S Plaid and even the less expensive Audi e-tron GT, which will essentially be a re-bodied Taycan to make matters worse.

Porsche is stuck with developing a new plant, a new EV architecture that is getting borrowed by rivals part of the same company and a model that will soon be overwhelmed by rivals from all directions.

Does everyone still think it's a winning bet or is it a Gordian knot? For the first time ever I can't actually be partial to a single side since it can go either way.
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About the author: Alex Oagana
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Alex handled his first real steering wheel at the age of five (on a field) and started practicing "Scandinavian Flicks" at 14 (on non-public gravel roads). Following his time at the University of Journalism, he landed his first real job at the local franchise of Top Gear magazine a few years before Mircea (Panait). Not long after, Alex entered the New Media realm with the autoevolution.com project.
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