Porsche plans to shift Cayenne SUV production from Slovakia to Leipzig, conditional on wage concessions

Production relocation plan

Porsche plans to move all three drivetrain variants of the Cayenne SUV from Slovakia to Leipzig. CEO Michael Leiters wants this to secure long-term capacity utilization at the underused German plant. The Frankfurter Allgemeine Zeitung cited employee-side sources for the report; Porsche declined official comment but confirmed ongoing talks with labor representatives.

“Some issues are still open and need to be discussed. In the interest of the workforce and the company, we want to make swift progress. When and how that will happen depends on the next few weeks.”

Workforce cost-cutting

The shift would require German workers to accept noticeable wage reductions because Slovak pay is far lower. Already, Porsche has not renewed contracts of several hundred temporary staff in recent months. The company plans to cut 200 jobs by August through voluntary agreements and severance packages, and up to 400 employees will be temporarily transferred to Wolfsburg via an internal transfer scheme.

Volkswagen crisis backdrop

The Cayenne move unfolds as parent Volkswagen faces possibly its largest restructuring in nearly 90 years. Reuters reported that VW plans to wind down car production at four German plants: Emden, Zwickau, Hannover, and Neckarsulm, with fears of up to 100,000 job cuts in coming years. Porsche's own Stuttgart-Zuffenhausen and Leipzig factories are far from full capacity, making the relocation a cost-saving within the broader group overhaul.

Investor pressure and strategic goals

At the latest annual meeting, shareholders urged Porsche CEO Leiters to accelerate his turnaround plan. Leiters acknowledged the portfolio had become too complex and said the number of variants would be reduced. The company may also expand its range of high-margin combustion-engine sports cars and large SUVs, while pressing ahead with cost reductions.