VW’s Audi Brand May Halt Production of High-End Luxury Models
The well-known Audi brand, the wholly owned subsidiary production wing of Volkswagen Motors Corp, may halt manufacturing of the high-end luxury models sometime at the beginning of the next 2013 model year, if a decline in the parts of Western Europe automotive market further deteriorates. The latest news has been personally informed by the company’s top labor leader.
German’s first-class automakers were regarded greatly protected to the crisis battering mass-market car manufacturers of Europe. At present, however, the recent cracks have started to indicate that persistent unemployment rate and decelerating growth of economy discourage consumers from making new car purchases.
The number-2 luxury automaker in the world has closed its 2nd largest production plant located in Neckarsulm twice during early and late 2012 October for a period of 1-week each time, greatly upsetting manufacturing processes of the new models, including the A8 sedan, the A7 coupe, and R8 sports car. Located close to Stuttgart in the vicinity of the Southeast Germany, the Neckarsulm production plant produces vehicles ranging from the luxury A4 sedan to the brand’s most costly models such as A8 (costs 70,000 Euros), and R8 Spyder (costs 125,000 Euros).
Peter Mosch, the chief of Audi’s Work Council, recently told that the stoppages that took place during October this year are appropriate for a short-range duration. Mosch added that if the market condition worsens substantially early next model year, then it is likely that additional measure may be required to be adopted. Mosch is also one among the influential members, who is part of supervisory boards of both Audi, and its parent company VW.
As per the recent data from the well-known research company named IHS Automotive, the total number of models produced by the brand in Neckarsulm may drop by nearly 6.8-percent during the upcoming model year to reach 243,348-units. From the current market condition perspective, no additional reductions were intended, Mosch said. Audi brand, which actually makes up for nearly half of the overall operating earnings for VW Motors, is in fact not the sole luxury automaker to deal with the present weak demand.
During the previous month, Daimler said that it had reduced manufacturing of its luxury flagship S Class model until its next generation edition was all set to launch during mid-2013. Porsche Motors, which is also held by Volkswagen, is expected to cut Saturday’s working shifts at its major production plant located in Zuffenhausen from 2013 January, the place where it produces the legendary 911 sports car, and Cayman/Boxster Series.