Reports indicate that Porsche is planning to relocate the entire production of its crucial SUV model, the Cayenne, including all three engine variants, from Bratislava to Leipzig. According to the Frankfurter Allgemeine Zeitung, which cited employee circles, the automaker aims to secure the long-term utilization rate of its factory in Saxony.
However, this move is contingent on the employees agreeing to a noticeable reduction in wages, as the current pay levels in Slovakia are significantly lower than those of Porsche employees in Germany. Porsche executives are reportedly pursuing the shift from Slovakia due to overcapacity issues within Germany, noting that both the main plant in Stuttgart-Zuffenhausen, where sports cars are manufactured, and the SUV factory in Leipzig are neither close to fully utilized nor properly utilized.
The company declined to comment on the plan after being approached by the FAZ. Nevertheless, a spokesperson confirmed that ongoing negotiations are taking place with the employees, a fact also acknowledged by the overall works council. Ibrahim Aslan, the chairman of the works council, stated that “several topics remain open for discussion.” He added, “In the interest of both the workforce and the company, it is our concern to move forward quickly. When and how this will happen depends on the coming weeks.”
It is clear, however, that the Leipzig plant must weather a challenging period until new models arrive, and the transfer of Cayenne production is not a short-term solution. Furthermore, in recent months, Porsche has already decided not to renew the contracts of several hundred temporary workers. The company also plans to reduce 200 positions by August through voluntary separation agreements and severance packages. Additionally, up to 400 employees will be temporarily assigned to Wolfsburg under a temporary seconded system.
All these measures are part of a broader restructuring initiative that management intends to present in detail at a capital market day in October. Porsche plans to reduce the number of different model variants, overhaul its development structure, and leverage synergies with its parent company, VW. Most significantly, the company intends to conduct further staff reductions, with sources within the company indicating that several low four-digit positions are being phased out at the headquarters in Zuffenhausen and the development center in Weissach.
