Porsche said it is not considering producing its vehicles in the United States after its German parent company, Volkswagen, negotiated a deal with the Trump administration for Audi's new $4 billion factory in Georgia.
While growth in the North American market is crucial for Porsche as it seeks to offset a sharp drop in sales in China, low production volumes would mean that moving manufacturing would increase the complexity of operations, said Chief Financial Officer Jochen Breckner.
The comments came as Porsche returned to profit while moving ahead with a drastic restructuring that involves cutting 9,000 jobs and selling non-core assets.
The sports car manufacturer recorded an operating profit of 387 million euros (R$2.34 billion) in the third quarter, compared to a loss of 967 million euros (R$5.84 billion) a year earlier, exceeding analysts' forecast of a profit of 331 million euros. Porsche shares rose more than 2%.
Quarterly revenue fell 7.5%, to 8 billion euros (R$48.31 billion), with the continued decline in sales in China. In the first nine months of the year, vehicle deliveries fell 16%, to 178,500 units, with a decline in sales in China, Germany and other parts of Europe.
VW Chief Executive Oliver Blume has been negotiating with the Trump administration for more than a year and has promised "major investments" in the United States in an attempt to reach a separate deal with Washington that would reduce auto tariffs to below 15%.
It is not yet clear, however, whether Audi's investment will result in lower fares for the VW Group as a whole.
Audi's chief executive, Gernot Döllner, recently appeared alongside Trump, during a rally in Georgia, to announce an investment of US$4 billion (R$21.64 billion) in the construction of the brand's first factory in the country. The Audi executive, however, was the target of criticism from the unions, and Daniela Cavallo, president of the works council, classified his presence at the rally as "highly problematic".
In an internal memo sent Monday to Audi employees, Döllner said his decision to appear was "made solely in the interests of the company."
"At the same time, we recognize that the advertisement was interpreted as signaling a political position. We take this very seriously", commented the executive.
Asked whether Porsche would also consider manufacturing its Cayenne sports utility vehicle in the US after the construction of the Audi factory, Breckner said the company has no plans to transfer production from Germany to the US, considering the small scale of its volumes.
While using a shared factory could generate synergies, "it would still add complexity to our operations. We would still have engines and other parts that we would need to export to the United States," Breckner said. "We would have doubled investments when it comes to suppliers."
He added that he doesn't expect anything "positive" in terms of US tariff relief for Porsche. "We are basing our business model on the premise that the 15% tariffs will remain in effect," he declared. Trump said he may exempt companies that start manufacturing products in the USA from charging fees.
Under the command of new chief executive Michael Leiters, the sports car manufacturer is betting on a new combustion version of its best-selling model, the Macan, scheduled for 2028, and on higher prices for its luxury models in order to recover profits. Until then, however, the company warned that recovery will take time.
Still, there were some early signs of recovery, with the automotive division's net cash flow margin doubling from the previous year to 11.3%.
Meanwhile, Mercedes-Benz on Tuesday cut its annual guidance due to "an increasingly challenging market environment in China", triggering a 5% drop in its share price.
The German automaker, which will release its results on Wednesday (28), said it now expects an adjusted operating profit margin of 2% to 3%, up from the previous range of 3% to 5%.
