Porsche ceases domestic production in the United States

Increased U.S. tariffs raise the cost of exporting German cars to the U.S., potentially making it financially advantageous for manufacturers like Porsche to shift production to North America. This is the company's stance on the ongoing speculation about relocating production.

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2025 September 14 . 9:37 PM

1 min read

American-German automobile manufacturer Porsche will cease domestic production in the United... — American-German automobile manufacturer Porsche will cease domestic production in the United States.

Porsche ceases domestic production in the United States

In response to increasing costs due to US tariffs on auto imports, Porsche has announced that it has no immediate or concrete plans for local production in the United States. The German automaker's North America chief, Timo Resch, made this statement to Handelsblatt.

The tariffs, which currently stand at a rate of 15 percent (set to decrease retroactively to 15 percent as of August 1), have made it more expensive for manufacturers to sell German cars in the USA. However, Resch did not specify how much the tariffs would cost Porsche, but he did say it was "a significant amount".

Porsche's production volumes are significantly lower than those of other German automakers, such as Audi. This, coupled with the relatively small unit numbers compared to other brands, means that local production does not make sense from a cost perspective at the current stage for Porsche.

Resch also stated that the company is satisfied with the current origin of its vehicles. There are no concrete plans or immediate need for Porsche to produce in an existing plant of a VW subsidiary or to assemble completed parts in the USA.

Industry experts predict that German automakers will shift production towards the USA in the long term. However, for Porsche, in-house production in the USA remains temporarily ruled out. The company sees no immediate or concrete need for local production or end-assembly there as it would not be economically viable given Porsche's relatively small unit numbers compared to brands like Audi.