Porsche AG To Cut Production, Adjust Hike Prices
STUTTGART, West Germany (AP) _ The West German luxury sports car manufacturer Porsche AG on Friday announced plans to cut production because of shrinking U.S. sales.
The move will result in a ″short-time″ week for employees until the market improves. The automaker did not know how many workers would be affected.
Separately, John A. Cook, president of Porsche Cars Norht America, Inc., said in a statement issued in Reno, Nev., that the carmaker’s Dec. 1 price increase would be adjusted downward on two model lines.
U.S. sales of the high-speed luxury sports cars account for some 60 percent of all Porsche automobiles sold, company spokesman Uwe Brodbeck told The Associated Press in a telephone interview.
But sales dropped dramatically last month - about 30 percent in the United States alone - due to the stock market crisis and the fall of the dollar, he said.
Brodbeck said the company decided to reduce the annual production by a total of 7,300 cars.
The output of high-priced six- and eight-cylinder models will be cut by 4,900 cars, while the production of the cheaper four-cylinder models will be decreased by 2,400 units, Brodbeck said.
In the fiscal year ended July 30, Porsche built a total of 50,715 cars, 22,102 of them the six- and eight-cylinder models.
Porsche plans to increase production back to normal levels as soon as the market improves, he said.
Cook said in a statement that the prices of Porsche 911s and 928S 4s will increase by only 2 percent rather than the planned 3.9 percent increase. The increase on the four-cylender models will remain at 3.9 percent.
The price increases are the result of the weakening of the dollar against the West German mark, the statement said.