Image: PorscheAccording to the Frankfurter Allgemeine Zeitung (F.A.Z.), citing sources familiar with the matter, Porsche plans to relocate production of the Cayenne to its Leipzig plant in a bid to secure long-term utilisation of the site. If implemented, the move would bring a relatively short production run in Slovakia to an end: Porsche only began manufacturing the Cayenne at the Volkswagen Group’s multi-brand plant in Bratislava earlier this year. Since the beginning of February, all Cayenne variants – including combustion-engine, hybrid and battery-electric versions – have been produced on a flexible assembly line at the Slovak facility.However, the F.A.Z. reports that the planned relocation of Cayenne production to Leipzig depends on employees accepting lower labour costs. According to the newspaper, wage levels in Slovakia are substantially below those at Porsche’s German sites. When asked about the reported plans, Porsche declined to comment. However, representatives of both the company and the central works council confirmed that discussions on the matter are currently taking place.If Porsche moves Cayenne production to Leipzig, the project would fall under the responsibility of CEO Michael Leiters, who succeeded Oliver Blume at the beginning of 2025. Leiters is currently working to improve capacity utilisation at Porsche’s plants in Zuffenhausen and Leipzig. While the Stuttgart-Zuffenhausen site mainly builds sports cars, Leipzig serves as the company’s SUV production hub.The pressure to act is increasing as Porsche continues to face declining demand. Following a weak 2025, the carmaker delivered just 60,991 vehicles worldwide in the first quarter of 2026, down 15 per cent year-on-year. The downturn was particularly severe in China, where deliveries fell by 21 per cent during the same period.Porsche therefore faces the unusual challenge of rebuilding market share while simultaneously dealing with substantial excess capacity at its manufacturing sites. At the same time, parent company Volkswagen is pursuing its own restructuring efforts. According to recent reports citing insiders, the group is considering a more extensive cost-cutting programme that could include up to 100,000 job reductions, the closure of four plants and the spin-off of individual brands.Porsche CEO Michael Leiters is expected to outline a broader turnaround strategy for the sports car manufacturer during a capital markets day scheduled for October. However, key elements of the plan are already emerging. According to the Frankfurter Allgemeine Zeitung, Porsche intends to reduce the number of model derivatives, reorganise its development operations and make greater use of synergies within the Volkswagen Group. The measures are also expected to include further workforce reductions. The newspaper reports that a low four-digit number of jobs could be cut at Porsche’s headquarters in Zuffenhausen and at its development centre in Weissach.faz.net (in German)
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