German Car Makers Restructure as Porsche Suspends China EV Sales

German automobile manufacturers are intensifying restructuring to cope with higher production costs, shifting markets and accelerating electrification. Opel’s Rüsselsheim plant now runs a single shift and has cut about 40% of its engineering staff, while the company seeks a joint electric‑SUV project with China’s Leapmotor to reduce development time and component costs. Volkswagen is also weighing a major restructuring that could involve closing four German plants and affecting up to 100,000 jobs.

At the same time, Porsche has halted custom orders for its flagship Taycan and Macan EV models in China and plans to cease production of these models in September. Poor sales, limited inventory and steep discounts have forced the luxury brand to rely on existing stock, creating a sales gap in the Chinese market. Porsche’s global deliveries fell 14.7% in Q1, with China recording the steepest decline of 21% and the share of electric vehicles dropping from 25.9% to 19.8%. The company’s first‑quarter revenue slipped 5.2% to €8.4 billion.