Mercedes-Benz, Bayerische Motoren Werke AG and Audi AG are adding staff and cutting summer factory breaks to boost production as demand for luxury cars returns quicker than they had planned.
Daimler AG, the parent of Mercedes, has hired 1,800 temporary workers and added Saturday shifts at German assembly plants making the SLS gull-wing sports car, GLK sport-utility vehicle and E-Class convertible, spokeswoman Dominique Albrecht said. BMW has hired 5,000 temporary workers, while Volkswagen AGâs Audi is adding extra shifts, the automakers said.
German luxury-car makers have been riding surging demand in China and a rebound in the U.S. and Europe. BMWâs sales rose 11 percent in May, buoyed by deliveries of the 5-Series sedan and Z4 roadster. Mercedesâs sales climbed 17 percent as E-Class demand surged 84 percent, while Audi deliveries advanced 15 percent. BMW said the new 5-Series is sold out in all markets.
âThe recovery in luxury-car demand has been a bit faster than expected as confidence returns,â said Colin Couchman, an analyst at IHS Global Insight in London. âThe growth is sustainable, because these companies have continued to invest in new products and expand into new markets.â
The extra shifts are a turnaround from a year ago, when Daimler reduced hours for as many as 68,000 German employees to slash car production 23 percent. BMW, the worldâs largest maker of luxury vehicles, cut shifts for as many as 24,000 workers as it lowered output 13 percent.
Restoring Profit
Daimler and BMW, which recorded losses in their car divisions last year, are both predicting the units will return to profit on higher sales. Audi, whose profit fell last year, is forecasting âabove averageâ growth in results this year as it targets record sales, Chief Financial Officer Axel Strotbek said this week.
âWeâre now seeing in the U.S. that SUVs and everything else thatâs big and nice-looking is being sought after again,â Strotbek said at a June 22 briefing in Berlin.
http://www.businessweek.com/news/2010-06-25/luxury-revival-prompts-bmw-mercedes-to-add-shifts.html
Daimler AG, the parent of Mercedes, has hired 1,800 temporary workers and added Saturday shifts at German assembly plants making the SLS gull-wing sports car, GLK sport-utility vehicle and E-Class convertible, spokeswoman Dominique Albrecht said. BMW has hired 5,000 temporary workers, while Volkswagen AGâs Audi is adding extra shifts, the automakers said.
German luxury-car makers have been riding surging demand in China and a rebound in the U.S. and Europe. BMWâs sales rose 11 percent in May, buoyed by deliveries of the 5-Series sedan and Z4 roadster. Mercedesâs sales climbed 17 percent as E-Class demand surged 84 percent, while Audi deliveries advanced 15 percent. BMW said the new 5-Series is sold out in all markets.
âThe recovery in luxury-car demand has been a bit faster than expected as confidence returns,â said Colin Couchman, an analyst at IHS Global Insight in London. âThe growth is sustainable, because these companies have continued to invest in new products and expand into new markets.â
The extra shifts are a turnaround from a year ago, when Daimler reduced hours for as many as 68,000 German employees to slash car production 23 percent. BMW, the worldâs largest maker of luxury vehicles, cut shifts for as many as 24,000 workers as it lowered output 13 percent.
Restoring Profit
Daimler and BMW, which recorded losses in their car divisions last year, are both predicting the units will return to profit on higher sales. Audi, whose profit fell last year, is forecasting âabove averageâ growth in results this year as it targets record sales, Chief Financial Officer Axel Strotbek said this week.
âWeâre now seeing in the U.S. that SUVs and everything else thatâs big and nice-looking is being sought after again,â Strotbek said at a June 22 briefing in Berlin.
http://www.businessweek.com/news/2010-06-25/luxury-revival-prompts-bmw-mercedes-to-add-shifts.html
