Porsche will open its first factory outside Europe next year

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Porsche AG update

German Porsche will open its first factory outside Europe next year, which is completely different from the 90-year-old luxury brand’s approach to manufacturing cars near its famous Stuttgart home.

Malaysia will set up a small assembly line to serve more and more Porsche enthusiasts in Asian countries. They are currently forced to pay nearly twice the cost of imported sports cars. The reason is High tariffs and taxes.

This move by the Volkswagen brand is five years after the brand started production It’s cayenne The Slovak SUV has weakened the marketing slogan “Made in Germany”.

Since then, Porsche has continued to manufacture the vast majority of cars in its own country and proudly declares that its new electric Taycan is “designed and manufactured in Germany.”

Earlier this year, CEO Oliver Blume told the Financial Times that the brand Will not build a factory in China, Its largest and most profitable market.

“For China, producing from Europe is still an argument for quality and high quality,” he said in February, adding that in order to maintain Porsche’s reputation, it is worth absorbing higher production costs.

Albrecht Reimold, Porsche’s board member in charge of production, said on Monday that the company is “fortunate enough that, due to careful planning, our existing factory is sufficient to meet current and future global demand for our cars”.

But he added that Malaysia’s new assembly base “meets specific market needs. Although it is an independent project with moderate scale and capacity, it shows that we are willing to learn and adapt to specific local market conditions”.

Several other automakers, including Germany’s Mercedes-Benz, have been operating factories in Malaysia for a long time to enter the fast-growing market.

The World Bank predicts, Malaysia is likely to become a high-income economy Some time between 2024 and 2028.

For the past 10 years, Porsche has been selling cars in Malaysia through its dealer Sime Darby Berhad, and in 2020 delivered more than 400 cars in the country. This figure is an increase of 9% over 2019.

The company also announced on Monday that it will establish a research and development base in Shanghai to understand and meet the “highly specific” needs of Chinese customers.

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