Porsche is thinking about relocating assembly – Trump tariffs in its sights!

Porsche is thinking about relocating assembly – Trump tariffs in its sights!

Porsche AG, the renowned manufacturer from Stuttgart, is considering moving parts of the final assembly abroad. This could be influenced by the current US tariff policy, which has changed significantly under Donald Trump's presidency. According to a report by merkur.de However, Porsche points out that there are currently no plans for production in the US, which was confirmed by a company spokesperson.

Customs policy has a profound impact on German companies, especially since Porsche currently does not have any production sites in the USA and is therefore heavily affected by high tariffs. To minimize financial burdens, relocating final assembly of components such as interior components and tire assembly could be considered. So reported kleinezeitung.at that such a measure could help to mitigate the negative effects of US tariffs and at the same time preserve the valuable “Made in Germany” label.

Market situation and personnel restructuring

The significant challenges facing Porsche include not only customs policy, but also comprehensive cost curbs due to the current economic crisis. According to the report by merkur.de The company has already confirmed that it will cut around 3,900 jobs by 2029. These measures are in response to declining sales, which fell 8 percent in the first quarter of 2025, with the decline being particularly steep in markets such as China.

The situation is made worse by production slowdowns in Leipzig, while Mercedes-Benz announces that it will move production of the GLC SUV from Germany to Tuscaloosa in the USA. Porsche, on the other hand, does not plan to produce complete vehicles in the USA, but only parts of the final assembly, which could preserve the brand's independent character.

Future outlook

North America remains Porsche's most important sales market, and despite the challenges, the automaker continues to show increasing delivery numbers last year. However, the question remains as to how customs policy and economic conditions will affect Porsche's future position in the USA. Small newspaper reports that VW, Porsche's parent company, is already negotiating with the US Department of Commerce to mitigate the tariff dispute and plans to make major investments in the US.

Overall, the decision to relocate final assembly remains a strategic challenge for Porsche at a time when companies must remain innovative in order to both secure market shares and operate sustainably economically.