The head of Porsche says the company is not yet prepared to build a factory in China, despite struggling to meet recent demand in Asia.

Speaking to the Financial Times, Porsche CEO Oliver Blume suggested he wanted to keep production in Europe, even though China accounted for nearly a third of the brand’s sales in 2020.

“It is a quality and a premium argument still to produce from Europe for China,” Blume said. “Today it doesn’t make any sense [to move production to China].”

As the publication points out, many other German brands manufacture vehicles for China in that country, often making use of joint ventures.

Blume suggested to the Financial Times he was content to absorb higher costs to retain the “made in Germany” tag (though we should point out the Cayenne’s body is produced in Slovakia).

“That’s also the feedback we got from our dealerships and from our customers,” he said.

The executive concedes, however, that this could change over time.

“In 10 years, I don't know. It depends a lot on how volume develops and also the regulations in each country.”