Porsche still does not want to manufacture in China and instead consistently relies on "Made in Europe"

  • China has now also become the most important sales market for Porsche. In 2020 alone, the Stuttgart-based company was able to sell almost 89,000 cars there.
  • Nevertheless, the sports car brand would like to continue producing its cars only in Europe. This is what CEO Oliver Blume indicated to the Financial Times. With the exception of the Cayenne, all models will even come off the production line in Germany.
  • The “Made in Germany” seal should continue to contribute to the attractiveness of the Porsche brand in the future. For this, the company also accepts the higher production costs in this country.
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Whether it’s Daimler, BMW, or Stellantis, almost all European car companies now operate their own plants in China, where they produce specifically for the world’s largest market there. Until now, they have almost always been forced by the Chinese government into joint ventures with one of the local and mostly state-owned companies.

Tesla, with its factory in Shanghai, was the first foreign car company to benefit from the new regulation in force since 2019, according to which cooperation with a Chinese manufacturer is no longer mandatory. Although conditions have improved significantly, Oliver Blume, Porsche’s CEO, told the Financial Times that the sports car maker will resist this temptation and continue to produce exclusively in Europe for the next ten years.

It’s all about quality and prestige

A thoroughly surprising statement, after all, the Stuttgart company sells by far the most cars in China. Last year alone, 88,968 cars were sold there. This is more than 8,000 more than in Europe and around 30,000 more than in the USA. Furthermore, Porsche could benefit from lower production costs in the Middle Kingdom and save on shipping the vehicles. Despite the potential financial advantages, Porsche’s CEO does not want to follow the example of its premium competitors from BMW, Audi, and Mercedes. “At the moment, it makes no sense to relocate production. What it will be in ten years, I don’t know. It will depend on how the volume and regulations develop in the countries,” he told the business magazine in the interview. He added that it is still a sign of quality and underlines the brand’s premium claim to continue manufacturing cars for the Chinese market in Europe.

The Cayenne comes from Slovakia

In his opinion, it is well worth accepting the higher production costs that prevail in Germany in order to preserve the prestigious “Made in Germany” seal in the long term. And indeed, Porsche currently still builds most of its models in Germany. The electric hopeful Taycan, the two entry-level sports cars 718 Cayman and Spider, and the iconic 911 come off the production line at the main plant in Zuffenhausen, while the luxury sedan Panamera is manufactured in Leipzig together with the sporty mid-size SUV Macan.

The Cayenne’s big brother is the only “foreigner” in the model range: The luxury SUV is produced in Bratislava, Slovakia, together with the technically closely related VW Touareg and Audi Q7. At the beginning of February, however, it was reported that Porsche was planning a new plant in Malaysia. But this rumor has not yet been confirmed by either the automaker or the Southeast Asian country’s Ministry of Finance. However, the latest statements by Oliver Blume now indicate that the Stuttgart-based company will continue to remain loyal to Europe as a production location without exception.

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