Porsche and BMW to Halt Production

German carmakers made another move to cut output levels towards the end of the year to offset slumping demand as the global economic crisis prompts consumers and companies to closely monitor their finances.

Sports car maker Porsche (PSHG_p.DE: Quote, Profile, Research, Stock Buzz) halted production at its headquarters in the southern German town of Zuffenhausen, for one day on Nov. 21, and planned to stop assembly for another seven days until end-January.

The company said on Tuesday it no longer saw its financial year unit sales to end-July reaching the previous same period's level of 98,652 vehicles.


Read Article

BimmerGuyFL78 - 12/2/2008 2:48:23 PM

+1 Boost

I should also add that BMW currently has a lot of cars left over from 2008 and also currently over stocked with 2009 models. Why doesn't BMW just offer for this remaining month of the year big cash incentives to all their models? If BMW had $8,000 cash back in their 335i's I surely would trade in my E46 2004 325i in for one of those.

rumnyc - 12/2/2008 6:03:24 PM

+2 Boost

once you do big incentives, it diminishes brand equity/2nd hand value etc.--so basically you minimize short term loses, but the damage you do to ur brand has more long term consequences.

if i know anything, its that bmw has not only smart engineers, but smart marketing dept. as well--and they are trying to make the most of a bad situation. they'd rather take the short term hit and hope things smooth out after 6 months. if current conditions persist more than that, then they'll have no choice, like GM.

0to60 - 12/2/2008 4:09:40 PM

+1 Boost

no, Porsche and BMW.. I know.. bad joke.

mpls - 12/2/2008 3:44:11 PM

+1 Boost

They can't do that.. it'll hit their 2nd hand values.. they're trying to artificially maintain it.. but cannot do that in such circumstanes... it's a no win situation for them..