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Porsche : Porsche to make new sports utility vehicle in Leipzig

New plant - 100 million German mark investment - 260 new jobs - "Made in Germany" policy

Stuttgart. Dr. Ing. h.c. F. Porsche AG is to produce its forthcoming sport and off-road utility vehicle in a purpose-built new plant in the Eastern German city of Leipzig. More than 100 million German marks are to be invested in the site, buildings and machinery. This project will also create about 260 jobs. The new Porsche model line will be assembled and undergo final quality inspection at this new facility.

 

The Leipzig plant will form part of the linked production scheme also comprising the main Porsche factory in Stuttgart-Zuffenhausen and the VW plants in Bratislava, Braunschweig and Hanover/Wolfsburg. Sheet-metal pressings will come from Hanover or Wolfsburg, axle and suspension components from Braunschweig, and the bodyshell will be built and painted in Bratislava.

More of the added value of this new Porsche SUV than before will be contributed by system suppliers, who will for the most part also be situated in Germany.

The engine, the heart of this new and versatile model, will be produced in Zuffenhausen, where the Boxster and 911 sports cars and their engines are manufactured. This will not only enhance the performance potential of Porsche's main plant but also help to secure the employment situation there.

Work will commence on building the Leipzig factory in the autumn of this year, with the first vehicles due to leave the assembly lines by the end of 2001. It is intended to launch the new Porsche sports utility vehicle in 2002, and the Stuttgart-based company, which has invested more than a billion marks in this new vehicle project, aims to sell more than 20,000 units annually throughout the world.

The Chairman of the Porsche AG Board of Management, Dr. Wendelin Wiedeking, regards the choice of Leipzig as a firm decision in favor of Germany as a production location:


Railway Connection


Assembly Building


Test Track

"As a manufacturer of exclusive, premium sports cars, we will continue to rely on the high-quality work implied by the term 'Made in Germany'. Throughout the world, all Porsche products are clearly associated with Germany as their country of origin. For us, this is a most significant competition factor which enhances the social acceptance of our products as well as giving our brand image and the public approval which it enjoys a further boost."

The linked production scheme involving the Leipzig and Zuffenhausen facilities and various VW plants also offers Porsche every opportunity for producing its new utility vehicle within an optimum cost framework and offering it on competitive terms to the international market. Leipzig is in a favorable position in terms of transport logistics on the axis extending from Bratislava to the seaports of Emden and Bremerhaven. It is planned to export more than two-thirds of Porsche's SUV production, with the majority of these vehicles destined for the North American market.

The "virtual production plant" concept that Porsche has already realized so successfully for the Boxster in cooperation with a Finnish associate company, will be re-interpreted on a larger scale when production of the new sports utility vehicle gets under way in Leipzig and the resources offered by the VW linked production scheme are utilized. This too will mean new growth potential for Porsche without significantly increasing its production overheads. Dr. Wiedeking also emphasized that by choosing Leipzig as the production location, Porsche will be making an important contribution to the economic development of the German Federal State of Saxony: "Our decision in favor of Leipzig not only creates 260 new jobs but will also have a signal effect well beyond the boundaries of that city. Other companies, in particular those supplying the new plant, will follow Porsche's example and invest in the region."

Furthermore, as Dr. Wiedeking pointed out, the importance of the State of Baden-Württemberg and its image as a high-tech region will be further enhanced when a further high-performance engine goes into production in Zuffenhausen.

Porsche announced in July this year that in addition to its current Boxster and 911 model lines it was planning to manufacture and sell a "Sports Utility Vehicle" (SUV) with permanent four-wheel drive. In this market segment, the only one worldwide which is still expanding strongly, Porsche is confident that the SUV will give it the necessary operative freedom for further economic development.

The Porsche sports utility vehicle is to be built on the same platform as the corresponding model from Volkswagen AG. However, the two products will be entirely different in character. Development work on both of them is being led by Porsche and is concentrated on its Research and Development Center in Weissach, Germany.

Porsche's Chief Executive sums up as follows: "Zuffenhausen is not the only Porsche location that will profit from our new sports utility vehicle. This joint project has created about 300 new jobs in Weissach for highly qualified engineers, and is having the same effect at our German suppliers. We at Porsche are proud that our new SUV project is making a worthwhile contribution towards improving Germany's ability to compete still further, demonstrating its innovative skills and thus making it more attractive when exposed to international comparison."


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