Shoot us a Text.

2 days to turkey! Today we’re talking about how Porsche is realigning its EV goals and planning on more ICE and hybrids. Plus, California preps its own EV tax credit that won’t apply to Teslas, and air travel has its most complaints since the pandemic.

Show Notes with links:

• Porsche is pivoting its strategy to address declining BEV sales, planning new combustion-engine models to align with regional demand, while managing challenges in China and profit pressures.
  • Porsche’s BEV sales dropped to 7.3% of all sales through September, down from 12% in 2022.
  • China led the decline, with overall sales falling 29% amid tepid BEV adoption in the luxury market.
  • Porsche is aiming for a leaner China dealer network, anticipating long-term sales dips below peak levels.
  • Porsche’s Q3 operating profit margin dropped to 10.7%, down from 17% in Q2. The company has a goal of 20%.
  • CFO Lutz Meschke emphasized extending combustion-engine offerings, with new Cayenne and Panamera ICE versions planned, saying ““We are currently looking at the possibility of the originally planned all-electric vehicles having a hybrid drive or a combustion engine… What is clear is that we are sticking with the combustion engine for much longer,””

• California is bracing for a potential repeal of federal EV tax credits under the Trump administration, with Governor Newsom proposing a state-backed alternative to keep the electric vehicle momentum going.
  • Newsom is looking to revive California’s Clean Vehicle Rebate Program, which previously supported over 594,000 EVs with $1.49 billion in subsidies.
  • The plan could be funded by the state’s Greenhouse Gas Reduction Fund, even as California faces a $2 billion budget deficit.
  • Tesla, which builds EVs in California, likely wouldn’t qualify for a proposed state tax credit as it stands.
  • California is aiming to ban gasoline-only vehicle sales by 2035, targeting 80% EV sales by then.
  • Newsom’s office said in a statement, "The governor’s proposal for ZEV rebates… would be intended to foster market competition, innovation and to support new market entrants,"

• As air travel hits record highs this Thanksgiving, passenger complaints about cramped seating, added fees, and poor service are raising questions about whether flying has become worse — and how to fix it.
  • Airlines are squeezing coach seating while expanding premium options; Delta sold 74% of first-class seats in cash this year.
  • Budget-style “unbundling” adds fees for basics like carry-ons, seat selection, or sitting next to family.
  • The U.S. Transportation Department received nearly 97,000 airline complaints in 2023, the highest since 2020.
  • Passenger rights awareness may have contributed to increased complaints, despite fewer cancellations (1.2% in 2023 vs. 2.3% in 2022).

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/