Porsche Resumes Cayenne Production In Leipzig After Floods
News: German automaker Porsche has restarted production of its Cayenne SUVs at its Leipzig factory after heavy flooding in Central Europe caused manufacturing to stop temporarily, Automotive News reports. One shift has returned to work, but a facility spokesperson confirmed that supply 'remains critical'. The carmaker will therefore monitor the situation daily to ascertain how many vehicles can be made. Production was halted on June 6 2013 because of high water levels in the Czech Republic halting the freight train delivery of components manufactured in Bratislava, Slovakia.
BMI View: In the first four months of 2013, passenger car sales in Germany declined 8.5% y-o-y, to 958,500 units. BMI forecasts a decrease of 10.0% in passenger car sales over the year. We maintain a bearish outlook for consumer sentiment in the country. BMI expects ongoing deterioration in the German labour market, combined with weakness in the euro, to cause private consumption in the country to remain subdued in 2013. We believe that this will serve to moderate passenger car sales growth somewhat, and has informed our sales forecast.