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Reports US

US stock market daily report (March 19, 2014, Wednesday)

March 20, 2014, Thursday, 06:24 GMT | 03:24 EST | 11:54 IST | 14:24 SGT
Contributed by Millennium Traders

For the first time ever, “Made in Germany” brand label will no longer apply for the next generation of Porsche Cayenne SUV. The label was considered a core part of its corporate identity and marketing for Porsche. On Tuesday, Matthias Muller, Porsche chief executive said Porsche Cayenne SUV will be manufactured entirely in Bratislava, Slovakia after 2016. A facility in Bratislava currently manufactures most of the Cayenne although final assembly occurs in Leipzig. All Porsche vehicles will continue to be designed and engineered in Germany, per Muller and he noted that all production locations have to achieve the same high standards.

Volkswagen Group completed the purchase of Porsche in 2012, acquiring the 50.1% of the luxury automaker that it did not already own, for a price of approximately $5.6 billion plus, one ordinary VW share. The purchase ended a seven-year-long takeover feud which consisted of the attempt by Porsche to takeover Volkswagen and an ensuing embroilment of the ruling Porsche and Piech families. Volkswagen Group (parent company Volkswagen Aktiengesellschaft) is a German multinational automotive company headquartered in Wolfsburg, Lower Saxony, Germany. VW Group sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen names as well as; motorcycles under the Ducati brand and commercial vehicles under the MAN, Scania, Neoplan and Volkswagen Commercial Vehicles names. Volkswagen was founded in 1937 to manufacture the Beetle.

VW finalized the production decision for the Cayenne as part of reorganization plan. VW stands to derive significant synergy and time savings by manufacturing the Cayenne in its entirety in Slovakia, where labor costs are lower.To meet demands of the fast growing market for Cayenne, German engineers are moving facilities overseas.

Porsche Cayenne SUV accounts for nearly half of all Porsche sales. The Cayenne is a mid-size luxury crossover manufactured since 2002, the first V8-engined vehicle built by Porsche since 1995, with North American sales beginning in 2003.

During 2013, Porsche sales increased by 15%, a leader of profits for VW.