Porsche Plans To Expand Production Output At Stuttgart And Leipzig Plants
News: Porsche says it will continue expanding its production capacity in its Stuttgart and Leipzig plants despite fears of flat earnings during 2013, Automotive News reports. The luxury German-based carmaker is planning to spend US$923.8mn and US$658.4mn on its Stuttgart and Leipzig factories respectively by 2017/18. Between January and August 2013, vehicle sales have grown by 16% y-o-y to 106,777 units, putting Porsche on the path to a record number of sales during FY13 of at least 150,000 units. Porsche will also unveil its 918 Spyder supercar at the Frankfurt car show in mid-September 2013, before going on sale later in the year for US$845,000.
BMI View: BMI maintains a bearish outlook on the German autos market, on the back of declines in both the domestic and European markets. Although we are less bearish on passenger car sales growth over the year, we still expect the segment to remain in contractionary territory. This weak domestic market, combined with ongoing declines in Germany's primary export markets, has informed our bearish production outlook.