Greenshoring: Location Decisions in Reverse

How sustainability impacts reshoring in the automotive industry

Decisions on location are among the most discussed topics at companies. The majority of European production sites have been relocated abroad since the 1980s. Lower costs and the transfer of risks to suppliers were the main reasons for these strategic offshoring decisions. Today, there are numerous reasons for moving offshore manufacturing sites back to industrialized countries–so-called "reshoring". Sustainability has become an important driver in this process. The aim is to reduce CO2 emissions in the long term, secure supply chains and drive innovation. Increasing a company's competitiveness and attractiveness to its customers, employees, and society are also important factors in the location decision.

What role does sustainability play in reshoring and how do leading companies in the automotive industry assess this trend? The new study from Porsche Consulting provides information on how sustainability and reshoring can be combined in the best possible way.