Porsche is pulling the plug on a major chunk of its electric bicycle ambitions, with the German automaker announcing plans to shut down its e-bike motor division and cut hundreds of jobs as it refocuses on its core sports car business. The move will impact around 360 employees in Germany and Croatia. While Porsche didn’t specify exactly which subsidiaries are being hit hardest, it appears likely that the cuts will largely affect two of the company’s biggest e-bike acquisitions: German mid-drive motor maker Fazua and Croatian smart e-bike company Greyp. Porsche acquired a majority stake in Fazua back in 2022, seeing the lightweight drive system company as a key part of its future in premium electric bicycles. Fazua had carved out a niche with sleek, low-weight e-bike motors used by brands focused on performance-oriented urban and road e-bikes. That same year, Porsche also increased its ownership stake in Greyp, the connected e-bike company founded by Mate Rimac of Rimac Automobili fame. Greyp became known for its high-tech electric bikes packed with cameras, connectivity, and automotive-style software features. Advertisement - scroll for more content Now, though, Porsche says “fundamentally changed market conditions” are forcing a strategic retreat, according to the Financial Times. The company’s Porsche eBike Performance division had been developing high-performance drive systems for other bike manufacturers, an effort Porsche described as bringing the “Porsche driving experience on two wheels.” But the company is now shutting that division down entirely. Porsche will still continue selling Porsche-branded electric bicycles, though those bikes are manufactured by German bicycle company Rotwild rather than in-house. The restructuring comes as Porsche deals with falling profits, pressure from US tariffs, and a broader shift away from aggressive electrification plans. CEO Michael Leiters has been steering the company back toward combustion and hybrid vehicles while also pursuing wider cost-cutting measures. And unfortunately for the e-bike industry, Porsche’s retreat likely says more about the current state of the premium European e-bike market than it does about the long-term future of electric bicycles themselves. The last few years have been especially difficult for many high-end bike brands and suppliers as pandemic-era demand spikes gave way to softer sales and excess inventory throughout the industry. Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.
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