Tuesday 18th January 2011

Porsche Could Build In China

It's who builds it, not where, says Porsche boss

---

Porsche is seriously considering moving part of its production to China as it pushes towards building 200,000 vehicles a year.

Matthias Mueller, Porsche's CEO, told US business magazine Focus that a decision to move mainstream Porsche production outside Germany could be taken soon.

"This year, we are going to discuss whether to start assembly in Asia or North America", said Mueller. "The main thing is that the car has 'Engineered by Porsche' on it. Where it is produced is no longer so important."

The first subject for such a move could be the forthcoming sub-Cayenne SUV, the Cajun. That car is likely to be built in China, as it will share much of its architecture with the Audi Q5, which is already built at the VW group's Changchun facility in the north east of the country.

[grimsmeister]

"The main thing is that the car has 'Engineered by Porsche' on it. Where it is produced is no longer so important."

So they haven't learned from Mercedes' experience of building w210s in South Africa then...?

[kambites]

grimsmeister said:

"The main thing is that the car has 'Engineered by Porsche' on it. Where it is produced is no longer so important."

So they haven't learned from Mercedes' experience of building w210s in South Africa then...?

I think China have a rather stronger, more advanced, manufacturing industry than South Africa.

[LukeBird]

No great surprise given the amount Porsche must export to those markets.
I guess it would be much cheaper to build your cars in the local currency and without local import taxes and the like.

[grimsmeister]

Well, let's hope so. I take issue with the generalised statement about it not mattering where, not with Chinese engineering capability specifically. Anyone bought a Nanjing MG? (post 2005)

[lionrampant]

Well well, can they export their production processes successfully? We'll find out.

[kambites]

grimsmeister said:

Well, let's hope so. I take issue with the generalised statement about it not mattering where, not with Chinese engineering capability specifically. Anyone bought a Nanjing MG? (post 2005)

Aren't they still made in Longbridge?

[grimsmeister]

kambites said:

grimsmeister said:

Well, let's hope so. I take issue with the generalised statement about it not mattering where, not with Chinese engineering capability specifically. Anyone bought a Nanjing MG? (post 2005)

Aren't they still made in Longbridge?

I believe UK market ones are assembled in Longbridge from Chinese engineered kits. Non-UK market ones are built in China. (but do correct me...)

[kambites]

Possible, I'm not sure.

[Fire99]

hmm tricky one. I can see the theory. After all, i'd wager a good proportion of Porsche SUV customers aren't too picky about where it's built.

However, the reality of building the cars to the same standard as in Germany will be a challenge and it only takes a few bits of bad publicity over this and it could bite them on the bum.

Will be interesting to see how it pans out.

[kambites]

I think moving the SUVs out there first, would probably be a good move for them. I suspect their buyers are marginally less likely to be snobbish (or indeed even know) about where a car is built than the "enthusiast" sports-car buyers.

Edited by kambites on Tuesday 18th January 11:06

[grimsmeister]

kambites said:

I think moving the SUVs out there first, would probably be a good move for them. I suspect their buyers are marginally less likely to be snobbish (or indeed even know) about where a car is built than the "enthusiast" sports-car buyers.

Edited by kambites on Tuesday 18th January 11:06

True. In another market sector, plenty of people buy Vauxhalls because they are 'British', for example.

[pigpog]

Is this much different to BMW and Mercedes building SUVs in America?

[Ex Boy Racer]

surely it should be called chow mein rather than cajun

[grimsmeister]

kambites said:

Possible, I'm not sure.

Hey, maybe Porsche could subcontract 911 assembly to Nanjing Automobile to build at Longbridge. And hope the production lines don't get mixed up!

[jvr]

like all the call centres in india(99% of custs are happy) porsche say their customers are happy to have the car built in China

all these poor companies need more profit
P

[SleeperCell]

Depends what they mean by 'build'. Cayman and Boxster parts mostly originate in Germany but are assembled in Finland and the Cayenne is mostly built in Slovakia at the VW factory there.

[WMP]

Makes perfect economic sense and no doubt is great news for the bean counters.

But most of me says "oh dear".

[HundredthIdiot]

It makes most sense to start by making Porsches for the Chinese market in China.

This could just be a negotiating position with unions or angling for govt handouts.

[A Scotsman]

"Where it is produced is no longer so important."

Try asking that of the people that build it now. They'll be really impressed Porsche is transferring production from an industrial democracy to an undemocratic one party communist state that throws its people into jail at the drop of the hat and pays it's people a pittance. This nonsense of continually transferring Western wealth into China has to stop.

[Wills2]

A Scotsman said:

"Where it is produced is no longer so important."

Try asking that of the people that build it now. They'll be really impressed Porsche is transferring production from an industrial democracy to an undemocratic one party communist state that throws its people into jail at the drop of the hat and pays it's people a pittance. This nonsense of continually transferring Western wealth into China has to stop.

It is a shame, however we don't transfer our wealth anymore they transfer theirs by buying western government bonds without that we would be royally FUBAR.