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Mercedes Expands in Hungary as German Costs Soar 70% Higher

Mercedes Expands in Hungary as German Costs Soar 70% Higher
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Porsche Takes Opposite Approach

Porsche, however, is considering moving Cayenne production from Slovakia to Leipzig, where the smaller Macan is already made.

New boss Michael Leiters believes German manufacturing remains central to what buyers expect from Porsche. “We must reinvent ‘Made in Germany’ and prove ourselves,” Leiters said in June.

“Ultimately, that will determine whether we are successful.”

Bringing Cayenne production home depends on German workers accepting lower pay, while Porsche could cut thousands more jobs by 2035.

Mercedes production chief Michael Schiebe told Handelsblatt the expansion “helps us to secure jobs in Germany,” insisting “This isn’t about Hungary versus Germany.”

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But with German automakers under pressure from falling profits and increasingly competitive Chinese rivals, the bigger question remains: How much is 'Made in Germany' actually worth, and who's prepared to pay for it?

D
Editors Team
Author: Daniel
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