Porsche plans to shift Cayenne SUV production to Leipzig from Slovakia, FAZ reports
Porsche's Strategic Production Shift and Its Implications
June 27 (Reuters) - Porsche plans to shift production of its Cayenne SUV from Slovakia to its Leipzig plant in Germany to boost capacity utilisation, the Frankfurter Allgemeine Zeitung newspaper reported on Saturday.
Background and Context
A Porsche spokesperson declined to comment on the story, which came a day after reports that Porsche's parent, Volkswagen, is considering shutting four German factories and ramping up job cuts to as many as 100,000.
The spokesperson said Porsche CEO Michael Leiters had recently underlined that the company remained committed to its Leipzig plant and had said the firm needed to take decisive measures to remain competitive.
Key Details from the FAZ Report
Production Move Conditions
Here are some details of the FAZ report:
- It said the production move is conditional on workers agreeing to pay cuts, as wages in Slovakia are significantly lower than those of Porsche staff in Germany.
Worker and Plant Impact
- According to sources representing workers, the aim is to secure long-term capacity utilisation at the Leipzig plant.
- Porsche, whose deliveries fell in the first quarter, currently has significant overcapacity in Germany.
Company Response and Broader Context
- The company declined to comment on the plan to the paper, but confirmed it was talking to employee representatives.
- Porsche's pitch is part of broader cost-cutting measures at Volkswagen.
Job Cuts and Workforce Adjustments
- The plan comes after Porsche opted not to renew the contracts of several hundred temporary workers, and the firm wants to cut 200 jobs by August through voluntary redundancy agreements and severance offers.
(Writing by Dave Graham; Additional reporting by Joern Poltz; Editing by Jan Harvey and Andrew Heavens)
