MISERY SPREADING EVEN TO PORSCHE?
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Daimler AG (DAI) and Porsche AG provided evidence that the worst European car market in 17 years has started to spread to the luxury brands, mirroring a broader recession that has spilled from southern Europe to Germany.
Stuttgart, Germany-based Daimler said yesterday that operating profit at Mercedes-Benz Cars will fall this year, lowering a previous target of matching the 2011 figure, while Porsche plans to build fewer than the 155,000 cars and sport- utility vehicles originally planned for next year.
Daimler, Porsche, Bayerische Motoren Werke AG (BMW) andVolkswagen AG (VOW)’s Audi brand have so far proved resilient to the plunge in sales that has plagued Fiat SpA (F), PSA Peugeot Citroen and Renault SA. (RNO) The German automakers have been sustained by a robust domestic market and booming exports to China and the U.S. The German market is now also showing signs of weakening.
SOURCE: http://www.bloomberg.com