The words “strategic realignment” don’t usually bode well for employees and this appears to be the case for Porsche eBike Performance GmbH. More than 500 employees are expected to be affected by Porsche’s “strategic realignment” which will see the discontinuation of Porsche eBike Performance GmbH, based in Ottobrunn, Cellforce Group GmbH, based in Kirchentellinsfurt, and Cetitec GmbH, based in Pforzheim.
Dr. Michael Leiters, Chairman of the Executive Board of Porsche: “We must refocus on our core business. This is the indispensable foundation for a successful strategic realignment. This forces us to make painful cuts — including our subsidiaries.”
“Fundamentally changed market conditions for eBike drive systems” are cited as the key reason – bringing a premature end to the business division that formed just four years ago when it fully acquired the FAZUA business. As recently as last year, Porsche eBike Performance was recruiting for its leadership team, providing no clue that this glum news was upcoming. The eBike drive category is increasingly competitive with new entrants joining, perhaps a contributor to those “changed market conditions” as well as the strained bicycle market which has gone through protracted difficult trading.
The press statement closed: “Porsche eBike Performance GmbH was established to develop high‑performance eBike drive systems and market them worldwide. Due to fundamentally changed market conditions for eBike drive systems, the activities of the joint venture will be discontinued. This measure is in line with Porsche AG’s strategic focus on its core business. The closure of operations at the Ottobrunn and Zagreb sites affects around 360 employees.”