Daimler AG, Bayeriche Motoren Werke AG and Volkswagen AGs Audi unit are adding staff and cutting summer factory breaks to boost production as demand for luxury cars returns quicker than they had planned.
Daimlers Mercedes-Benz has hired 1,800 temporary workers and added Saturday shifts at two German plants making the SLS gull-wing sports car and E-Class convertible, spokeswoman Dominique Albrecht said. BMW has hired 5,000 temporary workers, while Audi is adding extra shifts, the automakers said.
German luxury carmakers have been riding surging demand in China and a rebound in the U.S. and Europe. BMWs sales rose 11 percent in May, buoyed by deliveries of the 5-Series and Z4 roadster. Mercedes 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.
The recovery in luxury car demand has been a bit faster than expected as confidence returns, said Colin Couchman, an analyst with IHS Global Insight in London. The growth is sustainable, because these companies have continued to invest in new products and expand into new markets.
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 above average growth in results this year, Chief Financial Officer Axel Strotbek said June 22.
Daimler, based in Stuttgart, has eliminated a three-week halt at engine factories in Berlin, Unterturkheim, and Hamburg, and hired 700 students to boost Mercedes production during summer vacation, Albrecht said.
