German carmakers ramp up production on high demand

Gasgoo From Reuters

Reuters (Frankfurt) - German carmakers are adding production shifts to meet demand, indicating a sharp increase in sales seen in the first few months of the year is holding up. Volkswagen AG (VOWG_p.DE), Europe's biggest carmaker, is considering keeping one production line at its main plant in Wolfsburg, Germany running during its traditional summer shut-down on a voluntary basis so it can keep delivering vehicles, a spokesman for the company said on Wednesday.

Its premium car unit Audi and BMW (BMWG.DE) are running their factories at high capacity levels.

"To keep delivery times as short as possible, we are adding some additional shifts," a spokesman for Audi said. BMW is considering the same, according to a spokesman.

German auto companies posted bumper first-quarter results, bolstered by continued strong demand in China, a recovery of the U.S. car market and growing sales in markets such as Russia and Britain.

BMW outshone its rivals with a sharp increase in first-quarter sales, fuelled by demand from China and the United States. [ID:nLDE7430BO]

Volkswagen beat quarterly earnings forecasts with emerging markets fuelling a sharp rise in sales and taking it closer to its goal of overtaking Toyota (7203.T) as the world's biggest carmaker. 

General Motors Co's (GM.N) European carmaker Opel is adding eight shifts at its factories in Gliwice, Poland and Britain's Ellesmere Port through July to meet demand for its compact model Astra, a spokesman for Opel said.

"This demand is in our European core markets, primarily in Britain, but also in France, and Russia is recovering, too," the spokesman said.

The plant at Opel's headquarters in Ruesselsheim, Germany, which makes the Insignia saloon model, is producing at full capacity and will start building Astra cars as well on Aug. 22.

Daimler AG (DAIGn.DE) is in talks with its works council to add shifts in the second half of this year and to shorten the annual summer shut-down period.

The maker of Mercedes-Benz and Smart branded cars last month reported robust quarterly results as demand for luxury cars in China met a rebound in the global truck market.

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