About Creating A Factory In The US Because Of Trump's Tariff, Porsche: We Are Not Tempted

Porsche Cayenne. (Doc. Porsche AG)

JAKARTA - The import tariff policy from the President of the United States (US), Donald Trump, has made a number of automotive manufacturers redesign their strategies so that vehicles have stable prices in the country.

Several manufacturers such as Toyota, Honda, and Volvo plan to assemble locally in the US a number of models marketed in the country in order to reduce costs and not be affected by this rate.

Even though the regulation is in effect, automotive brands like Porsche don't take a headache about this. The brand decided not to assemble its vehicles in the US.

Reporting from Reuters on Monday, June 9, a Porsche spokesman said that it had no plans to transfer its production to the US.

This dismissed previous news that said Porsche CEO Oliver Blume was considering moving the final stages of model assembly, such as installing interior components or installing tires to Uncle Sam's country.

In April, Porsche's Chief Finance AG Jochen Breckner explained that this localization is impossible given the low sales of its vehicles, even if the group cooperates with other VW brands.

Unlike Porsche, other VW Group brands such as Audi have decided to produce their best-selling models in the US and will announce their localization this year.

The manufacturer with the "four rings" logo said the plan existed before Trump returned to US president.

Porsche is now faced with an unfavorable sales trend in the global market. In the first quarter of this year, this sports car brand recorded a decline in sales of up to 8 percent in the first quarter of this year or 71,470 units.

Although the vehicles are not assembled in the US, the demand for Porsche cars in the region is still quite strong. In North America, manufacturers achieved an increase of up to 37 percent during that period or a figure book of up to 20,698 units.