Markets 
Published on
Porsche is apparently working on a far-reaching overhaul of its production operations. According to a report first carried by the Frankfurter Allgemeine Zeitung (FAZ), production of the successful Cayenne model is to be moved entirely from Bratislava in Slovakia to Leipzig. The plan is for the SUV to roll off the line there in future in all powertrain variants.
Porsche aims to secure Leipzig plant
For the plant in Saxony, this would provide an important long-term perspective. The backdrop is the current overcapacity at Porsche. Both the Leipzig SUV plant and the main factory in Stuttgart-Zuffenhausen are considered underutilised.
However, the plans apparently come with a crucial condition. According to FAZ, the relocation will only be possible if employees accept noticeable reductions in pay. Labour costs in Slovakia are significantly lower than in Germany. To make production in Leipzig economically viable, at least part of this gap would have to be closed.
The group works council is said to have confirmed that talks with the company are ongoing. Works council chair Ibrahim Aslan said that several issues were still unresolved. The aim, he said, was to reach a solution as quickly as possible, but it was still unclear when an agreement might be reached.
Porsche itself declined to comment on the specific relocation plans but, according to the newspaper, did confirm that negotiations with employee representatives are taking place.
Cost-cutting drive continues
The potential return of the Cayenne to Germany is part of a much broader restructuring of the sports car manufacturer. In recent months, several hundred fixed-term employment contracts have already not been renewed. By August, around 200 more jobs are also to be cut through voluntary severance agreements and redundancy payments. In addition, up to 400 employees could be temporarily transferred to Volkswagen’s Wolfsburg site.
Group chief executive Michael Leiters has already justified the cost-cutting measures by pointing to the difficult market environment. Speaking to the Leipziger Volkszeitung, he said: ‘The persistent pressure on the automotive industry also requires consistent action at Porsche.’ At the same time, he gave an explicit commitment to Germany as a production base and to the Leipzig plant.
Sales slump puts Porsche under pressure
The restructuring is taking place against the backdrop of a difficult business situation. In particular, weak sales in China, the impact of US tariffs and heavy investment in the company’s strategic realignment are weighing on Porsche. In the first quarter of 2026, global deliveries fell sharply. The sports car manufacturer had previously reported a massive slump in profits for the 2025 financial year.
By relocating the Cayenne to Leipzig, Porsche could improve capacity utilisation at its German plant in the long term, but probably only if the company and the workforce agree to painful concessions.
Read the full article here
