Porsche continues to avoid manufacturing vehicles in the U.S., disregarding the implemented American car tariffs.
In a statement to the "Handelsblatt", Timo Resch, head of North America at Porsche, has confirmed that the luxury car manufacturer has no immediate or concrete plans for local production in the USA. This decision comes amidst ongoing tariff battles and the gradual shift in production that industry experts anticipate for German automakers towards the USA in the long term.
The tariffs have been a significant burden for manufacturers, including Porsche. Resch did not disclose the exact cost of tariffs to Porsche, but described it as "a significant amount". The current tariff rate of 27.5 percent still applies to some cars, but it is set to decrease retroactively to 15 percent on August 1.
Porsche, for now, has no need for the pure final assembly of completed parts in the USA. Moreover, the production volumes of Porsche are significantly lower than those of Audi, making local production under current conditions not cost-effective.
Despite this, Porsche has temporarily ruled out domestic production in the USA, including in an existing plant of a VW subsidiary. The company also has no plans for producing cars in such a plant in the near future.
The high cost of tariffs and the unprofitability of local production under current conditions have made the sale of cars significantly more expensive for manufacturers. This has led to a reconsideration of production strategies, with many automakers looking to adjust their operations in response to the challenging environment.
As the situation evolves, it will be interesting to see how Porsche and other German automakers adapt to the changing landscape in the USA. For now, however, it seems that the company is focused on maintaining its current production strategy while navigating the complexities of the tariff situation.
