Porsche announces production cuts

German sports-car maker Porsche is planning a series of production cuts after the global economic crisis hit sales.

A fall in demand resulted in the firm halting assembly lines for one day last week at its plant in Zuffenhausen.

Porsche, which is based in Stuttgart, said to accommodate the dip in demand, it would have seven further work-stoppage days before the end of January 2009.

Sales of the company's cars, a favourite among wealthy City workers, are not expected to reach the level seen last year - which stands at 98,652.

A statement for the company said: "Signs of a severe slump in demand in the global automobile industry are highly visible... Porsche cannot escape this overall downward trend."

Wendelin Wiedeking, chief executive officer at Porsche, said the company's pledge to take a 50% stake of Volkswagen may have to be postponed due to the financial downturn.

However, she added that Porsche's goal was still to take at least 75% ownership of the German car-maker by the end of 2009.

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