Porsche wants to move Cayenne production back to Germany — but there's a catch

Porsche is making plans to bring Cayenne SUV production home to its Leipzig plant in Germany, moving the assembly line from Slovakia where it currently sits alongside Volkswagen Touareg, Audi Q7, and Q8 models.

The catch? Workers will need to accept pay cuts first.

According to a report from Frankfurter Allgemeine Zeitung, the relocation hinges on German workers agreeing to lower wages — because right now, the cost gap between Slovakia and Germany is significant. Labor in Slovakia is substantially cheaper, and moving production without adjusting pay would inflate costs.

Porsche’s motivation is straightforward: the company has serious overcapacity at its German facilities. The Leipzig plant needs units to build, and bringing the Cayenne there would keep the lines running at healthier utilization rates. It’s a pragmatic move in an industry that’s been wrestling with underused factories across Europe.

The financial picture explains the urgency. Porsche delivered 60,991 vehicles globally in the first quarter of 2026 — a 15% drop year-over-year. China was the hardest hit, with only 7,519 deliveries, down 21% from the same period last year.

This production shift is part of a broader cost-cutting effort across the Volkswagen Group. Before this plan surfaced, Porsche had already decided not to renew contracts for hundreds of temporary workers. The company also aims to cut 200 positions through voluntary separation agreements and severance packages by August.

Porsche declined to comment on the production relocation plan but confirmed that discussions with employee representatives are underway.

The Cayenne has been built in Slovakia alongside Volkswagen Group platform siblings since its early generations. Moving it to Leipzig would be a reversal of the broader automotive industry trend of shifting production eastward for lower costs — and a test of whether German workers are willing to compromise on wages to keep jobs in the country.