Porsche will build a factory in Malaysia next year announces company Monday. It is the first time for a 90-year-old German automotive company to build a factory outside Europe. In addition, there will be a research center in China.
Although Porsche boasted over the years that all its cars were manufactured in its native Germany, the company has been expanding for some time. Porsche Cayenne has been manufactured in Slovakia for five years.
So now the company is going farther than Slovakia and moving to Asia. In its largest market, China, the automotive brand, which is part of the Volkswagen Group, is building a domestic market research center and production opportunities. There will be no factory in the country at this time. In February, CEO Oliver Blume said in an interview with Financial Times even that he was equivalent to supplying the Chinese market from Europe.
Porsche is building a factory near Malaysia, but the cars manufactured there target the Malaysian market specifically. The Malaysian government imposes higher tariffs on importing foreign cars for foreign vehicles, causing residents to pay almost double the current price.
Other car brands, such as Mercedes-Benz, Mazda and BMW, are already making cars in Malaysia. According to World Bank the country is in a recession and will reach a state of high income economy sometime between 2024 and 2028.