Audi is preparing a major change for its flagship A8 luxury sedan, with a new report indicating that the next-generation model could be built in Leipzig beginning in 2030 at the earliest. The move would shift production away from the automaker’s traditional Neckarsulm facility and bring Porsche into the development picture as Volkswagen Group looks to reduce costs and streamline its model lineup.

The report, cited by Automotive News Europe and based on information from the Heilbronner Stimme newspaper and Reuters, suggests the next A8 could share a platform with the next-generation Porsche Panamera. The change comes as Audi faces declining A8 sales and uncertainty surrounding the future of manufacturing jobs at Neckarsulm.

Next-Generation Audi A8 Could Arrive in 2030 or Later

The Audi A8 has traditionally been manufactured at the company’s Neckarsulm facility in Bavaria, which also produces the A5 and A6. Under the reported plan, the next generation would instead be built in Leipzig, where Volkswagen Group member Porsche operates a plant.

Sharing a platform with the next Porsche Panamera could help Audi reduce manufacturing costs and development times. The strategy also aligns with Volkswagen Group’s intention to cut its model lineup by half before the end of the decade.

However, the transition may take years. According to the report, production of the new A8 in Leipzig is not expected to begin before 2030.

Audi A8 Sales Continue to Decline

Audi is phasing out the current D5 (4N) A8 after introducing modest updates earlier this year for the 2027 model year. The decision comes amid weak demand for the flagship sedan.

Dataforce figures show that Audi sold just 966 examples of the A8 and its high-performance S8 variant combined in Europe through August. In the United States, the company sold 513 units during the first six months of 2026, down 31.5% from the first half of 2025.

The 2027 model-year refresh and any eventual successor may therefore need to remain in service for an extended period while Audi prepares the next generation.

Neckarsulm Workers Face Uncertainty

Moving A8 production to Leipzig could reduce costs for Volkswagen Group, but it also raises questions about the future of approximately 15,000 workers at the Neckarsulm facility.

Audi has already announced plans to cut 7,500 jobs by the end of 2029. If A8 production leaves Neckarsulm, the factory could face additional employment consequences, although the report does not specify how many jobs might be affected by the move.

The factory’s future is part of a wider challenge facing Volkswagen Group as it considers how to reduce costs and adjust its manufacturing operations.

Volkswagen Group Faces Wider Manufacturing Challenges

Growing competition from Chinese automakers in Europe and other markets, along with U.S. tariffs that are putting pressure on profit margins, has increased uncertainty across Volkswagen Group’s manufacturing network.

Plants in Emden, Hanover and Zwickau could face staggered closures beginning in 2031 unless additional cost-saving measures are introduced. Group CEO Oliver Blume has suggested that the facilities could be used for defense contracts or serve as anchors for partnerships with Chinese companies.

The challenges extend beyond Audi. Even the Mercedes-Benz S-Class and BMW 7 Series, which lead the German luxury sedan segment, no longer sell in the numbers they once did.

Luxury Sedans Face an Uncertain Future

Sharing a platform with Porsche could help the next Audi A8 deliver improvements in driving dynamics, technology and luxury. However, the report notes that large luxury sedans remain difficult vehicles to sell, particularly as the A8 struggles to compete with its German rivals.

A renewed consumer preference for lower vehicles over SUVs could change the outlook for the segment, but the market’s direction remains uncertain.

For Audi and Volkswagen Group, the proposed A8 production move highlights the difficult decisions facing the automaker as it seeks to lower costs, address declining sedan demand and determine the future of its manufacturing facilities. The coming years will be critical as the group works to navigate those pressures.