Porsche pulls the plug on diesel

Porsche has officially pulled the plug on diesel so that it can concentrate efforts and resources on petrol, hybrid and electric cars.

The German car-maker confirmed the news overnight, ending months of speculation around its oil-burning future, first reported here.

Citing a significant increase in demand for electric cars, Porsche chief executive Oliver Blume said in an official statement the sports marque was going all-in with e-mobility, investing $A9.7 billion in the technology in a move projected to take effect by 2022. It will also continue investing in petrol internal combustion.

“Porsche is not demonising diesel,” said Blume. “It is, and will remain, an important propulsion technology.

“We as a sports car manufacturer, however, for whom diesel has always played a secondary role, have come to the conclusion that we would like our future to be diesel-free. Naturally, we will continue to look after our existing diesel customers with the professionalism they expect.”

Blume’s final comment is underlined by a promise to continue optimising Porsche’s petrol-powered internal combustion engines for some time, convinced they continue to “play an important role in the Porsche product portfolio”.

Porsche Cars Australia spokesman Chris Jordan said remaining stock of the diesel-powered Macan would be sold locally before the phase out is complete. It is understood new stock of diesel-powered Cayenne and Panamera have been depleted.

The increased investment in electric technology is not by coincidence. Porsche says 63 per cent of Panameras sold in Europe are now hybrid models.

Conversely, diesel only comprised 12 per cent of Porsche global sales share in 2017, and demand is said to be free-falling.

Porsche's decision comes as it prepares to launch its new electric vehicle, the Taycan (pictured), in the first half of 2019.

Porsche has been swept up in Volkswagen’s ongoing diesel emissions scandal, which appears the obvious trigger here.

In May, Porsche recalled roughly 60,000 versions of the Macan and Cayenne in Europe over the fitment of cheat devices, at the insistence of the German automotive regulatory body, the KBA.

At present, no such recall has been issued for Australia.

The diesel implications extend much further than simply Volkswagen. Last week, reports suggested BMW was abandoning diesel altogether in the US, and certain German cities now ban diesels over a certain age.

The implications haven’t been evidenced in the same capacity in Australia, however in this instance, Porsche has clearly spoken.