Why Porsche NA CEO Timo Resch is banking on ‘selection’ to survive the turbulent electric vehicle market

Timo Resch is basking in the sun. That’s literally true as we speak on a beautifully clear California day at Quail, one in every of the most prestigious events of Monterey Car Week. But it’s also true figuratively, because Resch, who took over as CEO of Porsche Cars North America (PCNA) last November, is in a excellent place professionally.

PCNA just reported its best quarter ever, with second-quarter sales up 13% compared to the same period in 2023. The brand has been showing regular momentum recently and comes at a critical juncture as Porsche pushes electrification in an increasingly uncertain market.

Porsche is set to launch its second EV, an all-electric version of the Macan SUV, the brand’s most inexpensive model. It shall be followed shortly by an all-electric version of the 718, the brand’s most inexpensive sports automobile. These cars come hot on the heels of the new-generation 911, available as a hybrid for the first time, and the recent Panamera, which now generates much more power and range thanks to a redesigned plug-in hybrid system.

Sitting between a snow-white Macan Electric and a brilliant purple Taycan Turbo GT, Resch calls it “the biggest remapping of the product portfolio that we’ve ever done.” The push for electrification is ongoing, however it’s lost some steam recently. The company previously planned to be 80% electric by 2030; but just last month, Porsche hit the brakes and he told Reuters this goal is currently “dependent on customer demand.”

Resch is pragmatic about the situation, saying the company’s core mission is simply to give customers what they need. “I think the market will tell us, the customers will tell us. To have options and choices, that’s what Porsche is all about,” he says.

The recent, battery-powered Macan shall be a test of that theory, since it doesn’t replace its combustion-engined predecessor but complements it. “We have the Macan Electric and, in the foreseeable future, the Macan ICE (combustion engine),” says Resch.

Initially at the least, electric and petrol versions of the Macan shall be available at the same time. They will sit side by side in showrooms, each competing for purchasers’ attention.

Resch declines to provide official numbers on pre-orders or shows of hands for the Macan Electric, but says interest is in step with regional trends. “If you look at the map, there are states in the United States where electrification is really taking off. They have good infrastructure. There’s a lot of demand. There are other states where it’s a little slower,” he says.

The electric Macan will first be presented at two US Porsche Experience Centers in Los Angeles and Atlanta, where interested parties will find a way to see for themselves whether this electric SUV lives up to the expectations placed in it.

“Our dealers and customers are very excited to finally see this car, get behind the wheel and test drive it,” Resch says.

Software problems

Resch’s emphasis on “finally” follows the somewhat troubled development the electric Macan has undergone on its way to production. A series of software development issues have delayed the rollout of the all-electric SUV, built on the PPE platform that can even underpin the upcoming Audi Q6 E-Tron.

Software has been a contentious issue inside Volkswagen Group (Porsche’s parent company) for years, largely over the troubled Cariad division, which has been suffering from internal delays. Those struggles led, at the least partially, to a recent $5 billion investment and three way partnership with Rivian that can give VW access to the startup’s software stack.

Porsche is also mixing its code base with Google and Apple. While General Motors is pushing mobile integration aside, taking more of the user experience in-house and keeping smartphone projection options at bay, Porsche is moving toward deeper mobile integration.

Resch says Porsche will all the time develop its own automobile interfaces—infotainment systems which might be easy to use and comprehensive when it comes to functionality. “But at the same time, if customers want to have other choices, we will provide them with those options,” he says.

Turning to Apple and Google

This means future Porsche dashboard experiences with native Android apps, while also providing increasingly deep Apple CarPlay integration. Soon, your iPhone will find a way to reach beyond the automobile’s central touchscreen with its whiskers, even taking control of the instrument cluster behind the steering wheel.

“Of course, we have a proven, long-standing relationship with Apple. We have a very good exchange of views on where the industry is going. And for that reason, it’s good to align with them, because we know that Apple itself is also very customer-centric, very customer-focused,” Resch says. “But that doesn’t mean we’re locked into anything.”

Again, Resch says it’s customer demand that’s driving Porsche to work more closely with the Cupertino tech giant. “We have a pretty high share of Apple users,” he says.

Apple is subsequently seen as a secure partner for the brand, but there is one area where Resch is not keen on forming alliances: politics.

I ask Resch about the increasingly tense political situation surrounding electric vehicles in the U.S. market. It’s the only time he stops his quick answers and takes a moment to consider his answer.

Finally, he returns to his mantra: “I think that we, as a brand, are best advised to always offer a choice,” he says. “There really needs to be more choice for customers with different variants, so that they can really choose. That’s what they’ve become accustomed to in the automotive market. That’s what they’ve become accustomed to in Porsche. And if you give them a choice, they’ll naturally find their way, too.”