Porsche to Expand Leipzig Factory for Macan EV

Volkswagen AG’s Porsche unit plans to invest more than €600 million ($677 million) to prepare its factory in Leipzig, Germany, to make an all-electric version of the Macan compact crossover vehicle.

The funds will be used for an 812,700 sq-ft body shop for the Macan. Production of the next-generation Macan, which was announced last month, is expected to start early next decade.

In addition to the all-new Macan EV, the Leipzig facility will build an updated version of the current piston-powered model. Porsche says the plant also could be used for unspecified hybrid-electric vehicles.

The electrified Macan will ride on Volkswagen Group’s PPE (Premium Platform Electric) architecture, which also will carry the upcoming Taycan electric sedan. Porsche will build the Taycan in Zuffenhausen, Germany.

Porsche says it has invested more than €1.3 billion ($1.8 billion) at the Leipzig plant since the factory was opened in 2002. The facility, which employs 4,300 workers, currently builds the Macan and Panamera—plus vehicle bodies for select Bentley models.

The Macan accounted for nearly one-third of Porsche’s global sales last year. Porsche introduced the crossover in 2014 and gave it a mid-cycle update last year.