Tariffs Update: Porsche Says It’s Not Shifting Manufacturing

After Bloomberg ran a story saying Porsche is shuffling manufacturing thanks to tariffs, the German automaker say that’s no true. This is the latest in the ongoing drama in the auto industry as trade relations around the world shift.

BMW has a theory about tariffs.

According to the Bloomberg report, Porsche CEO Oliver Blume was considering having almost completely assembled cars shipped to the US. By having items like the interiors and tires installed in this country, the automaker would supposedly dodge the cost of tariffs.

That would be perceived by some as a way to game the system. Depending on your political leanings, that’s either hilarious and great or tantamount to treason. But it seems that doesn’t matter, because Porsche isn’t doing it.

Porsche famously assembles most of its cars in Germany at the Zuffenhausen and Leipzig plants. None of the current model lines are manufactured in the US, meaning the company has to shell out for tariffs.

The US is a key market for Porsche, in fact it’s the single largest market for the brand, so those tariffs are having at least some effect. But the automaker famously has big profit margins on its cars, thanks in no small part to many customers ordering pricey options, often in a long list, greatly inflating the transaction price of new vehicles.

But in this market, it seems like every car company is vulnerable and has to fight for its existence. While Chinese automakers haven’t entered this market, they’re giving Porsche and others a run for their money in Europe and elsewhere.

All this isn’t to say Porsche will never establish a factory in the US. After all, as CBT News points out, Blume has met with officials in this country about some “massive investments” when it comes to assembly work, although that might be for other Volkswagen Group brands.

Image via Porsche