Porsche is considering relocating production of all Cayenne models from its manufacturing facility in Bratislava, Slovakia, to its plant in Leipzig, Germany, according to a report by the Frankfurter Allgemeine Zeitung (F.A.Z.) citing people familiar with the matter.
The proposed move would cover the entire Cayenne lineup, including internal combustion engine, hybrid, and battery-electric variants. According to the report, the relocation would depend on employees at the Leipzig facility agreeing to lower labor costs.
Porsche declined to comment on the reported plans. However, representatives of the company and its central works council confirmed that discussions are underway.
Cayenne Production Could Return to Leipzig
Porsche only began assembling the Cayenne at the Volkswagen Group’s multi-brand plant in Bratislava earlier this year. Since February, all powertrain variants of the SUV have been produced on a flexible assembly line at the Slovak facility.
If the production shift proceeds, it would end Cayenne manufacturing in Slovakia after a relatively short period and reinforce Leipzig’s role as Porsche’s primary SUV production site.
The project would be overseen by Chief Executive Officer Michael Leiters, who took over leadership of the automaker at the beginning of 2025. Leiters has been working to improve production utilization at Porsche’s manufacturing plants in Leipzig and Zuffenhausen.
Weak Demand Drives Restructuring Efforts
The reported manufacturing review comes as Porsche continues to face softer global demand.
The automaker delivered 60,991 vehicles worldwide during the first quarter of 2026, a 15% decline from the same period a year earlier. The downturn was particularly pronounced in China, where deliveries fell 21% year-on-year.
The weakening sales have left Porsche balancing efforts to regain market share while addressing excess production capacity across its manufacturing network.
Wider Cost-Cutting Measures Under Review
The reported production shift forms part of broader restructuring efforts within both Porsche and parent company Volkswagen Group.
According to the F.A.Z., Porsche is preparing measures that include reducing the number of model derivatives, reorganizing development activities, increasing synergies within the Volkswagen Group, and implementing additional workforce reductions.
The newspaper reported that a low four-digit number of positions could be eliminated at Porsche’s headquarters in Zuffenhausen and its development center in Weissach.
Michael Leiters is expected to present the company’s broader turnaround strategy during Porsche’s capital markets day scheduled for October, outlining initiatives aimed at improving profitability and long-term competitiveness.
