U.S. Production Shelved by Porsche
In an interview with Handelsblatt, Timo Resch, Porsche's North America chief, announced that the luxury car manufacturer currently has no concrete plans for local production in the USA. This decision stems from the cost-inefficiency of local manufacturing, given Porsche's relatively low vehicle volumes in the country compared to competitors like Audi.
Resch explained that increased costs from U.S. tariffs on auto imports, although significant, do not make local production a viable option. He did not specify the exact cost to Porsche, but described it as a substantial amount.
The high tariffs imposed by U.S. President Donald Trump on auto imports have made selling German cars in the U.S. more expensive for manufacturers. Despite this, Porsche is not considering domestic production as a means to offset these costs.
Industry experts predict medium-term production shifts of German automakers towards the USA, but Porsche, for now, sees no immediate need for either domestic production or production in an existing plant of a VW subsidiary, or final assembly of completed parts in the USA.
Resch also made it clear that the continued tariffs on auto imports have not led to any concrete plans for domestic production by Porsche. The tariffs are not mentioned as a reason for increased export costs due to U.S. tariffs not driving Porsche towards domestic production.
While the tariffs on auto imports are not the sole factor influencing Porsche's decision, they are contributing to the high costs that make local production unattractive. A retroactive decrease of the tariff rate from 27.5% to 15% on August 1 is expected, but it remains higher than before the trade conflict.
Despite the challenges, Resch stated that Porsche is satisfied with the current origin of its vehicles. This suggests that for now, Porsche is content to continue importing its vehicles rather than investing in local production.
