Despite the imposition of US car tariffs, Porsche has decided not to manufacture its vehicles in the United States.
In a recent statement, Timo Resch, head of North America at Porsche, confirmed that the luxury car manufacturer has no immediate or concrete plans for local production in the United States. This decision comes amidst speculations that German automakers, including Audi, might shift long-term production to the US to avoid high import tariffs and reduce costs.
Resch also mentioned that the company is content with the current origin of its vehicles. However, he did not disclose the exact cost of tariffs to Porsche, but described it as "significant." The US tariffs on imported cars make the sale of cars significantly more expensive for manufacturers.
Industry experts predict that German automakers will eventually shift production to the US in the long term. Audi and Porsche, for instance, are considering establishing a joint plant in Chattanooga, Tennessee, where Volkswagen already has a factory. This move would bypass the current 27.5% tariff and could potentially cut costs by up to 30%.
It's worth noting that a tariff rate of 27.5 percent still applies to some cars, but it is set to decrease retroactively to 15 percent from August 1. This decrease might influence the decisions of automakers regarding production locations.
However, for production in an existing plant of a VW subsidiary, there are no concrete plans and no immediate need from Porsche's perspective. Similarly, the idea of the pure final assembly of completed parts in the US also has no concrete plans and no immediate need from Porsche's perspective.
Porsche has temporarily ruled out domestic production in the United States, but the situation remains fluid. As the trade landscape continues to evolve, it will be interesting to see how Porsche and other automakers navigate the complexities of tariffs and production decisions.
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