Porsche ceases American manufacturing

Porsche, the luxury car manufacturer, has no immediate plans to establish local production in the United States, according to Timo Resch, the company's North America chief. In an interview with Handelsblatt, Resch explained that the low volumes of vehicles sold in the U.S. make local production or final assembly uneconomical, despite high U.S. import tariffs.

Resch did not disclose the exact cost of the tariffs to Porsche, but described it as "a significant amount." He also mentioned that there are no concrete plans for production in an existing plant of a VW subsidiary. This decision comes as a response to the tariffs imposed by U.S. President Donald Trump on auto imports, which have made the sale of German cars in the U.S. significantly more expensive for manufacturers.

Porsche temporarily suspended a U.S. auto production plan due to the tariffs. The tariff rate, currently at 25%, is higher than before the trade conflict, but it is set to retroactively decrease to 15% on August 1. Despite the increased export costs, Resch stated that there are no concrete plans for the final assembly of completed parts in the U.S.

Industry experts predict that German automakers will eventually relocate production to the U.S. in the medium term. However, Porsche remains content with the current origin of its vehicles. Resch emphasised that the company aims for stable prices amid political uncertainty, awaiting clearer trade agreements for planning security.

Despite the lack of local production, Porsche's sales in the U.S. continue to thrive. The company's lower production volumes compared to other companies like Audi make local production economically unfeasible at the current stage.

In conclusion, Porsche's decision to forego local production in the U.S. is a strategic move aimed at maintaining profitability and stability in the face of tariffs and trade uncertainties. The company continues to rely fully on importing vehicles and waits for clearer trade agreements for planning security.