Michael Macht, who is Volkswagen AG's head of production, predicts that Porsche AG's next model line will be built at Porsche's Leipzig plant in eastern Germany, according to a report from Automotive News Europe sister publication Automobilwoche.
Macht said however, that there has been no final decision yet. Beginning in 2013, Porsche will produce the new compact SUV, code-named Cajun, which will use key components from the Audi Q5.
Last December, the Leipziger Volkszeitung newspaper reported that Porsche had prepared plans to expand its Leipzig plant specifically for the Cajun and that there have been discussions with the city's authorities.
The decision from Porsche's supervisory board with regards to the Cajun's production location is expected to be made in mid-March. Macht has been tasked by VW Group, which owns 49.9% of Porsche, to be the production head of its 10 brands, which include Porsche, starting October.
Matthias Mueller is the successor of Macht as Porsche CEO. Mueller told Automotive News Europe earlier this month that Leipzig and Audi's factory in Ingolstadt are in the running to get the Cajun.
Mueller said that there may be "considerable one-off costs" if the SUV were produced in Ingolstadt. On the other hand, adding the SUV to Leipzig would require the installation of a body shop and paint shop to the plant, which Porsche insiders estimate will cost 500 million euros to 700 million euros.
Mueller said that Leipzig will be chosen if it was determined that the investment amounts for Leipzig and Ingolstadt are almost the same. [via autonews - sub. required]