These are the consequences of a high dependence of the minerals industry, which generates Dutch disease, neglecting the other sectors of the economy and appreciating the currency and results in a cyclical phase of high inflation and unemployment.
Porsche Cayenne and Panamera Production Affected by Floods
Production of the Porsche Cayenne and Porsche Panamera have been stopped at the automaker's Leipzig, Germany assembly plant, on account of flooding in the region. The plant produces the Cayenne SUV and Panamera five-door hatchback for global markets, including the U.S. According to a report in Automotive News, floods are preventing shipping from the Volkswagen Group's plant in Bratislava, Slovakia, to the Porsche's Leipzig plant. "We have a bottleneck in the supply of car bodies built in the Volkswagen plant in Bratislava, which are transported by train across the Czech Republic to our plant in Leipzig," a Porsche spokesperson said. High water levels are preventing trains from operating. Porsche says it will be able to make up the production by adding shifts when assembly can resume. Productions of other Porsche models, including the just unveiled Porsche 911 50th Anniversary Edition, are not affected by the floods. Year-to-date sales of the Cayenne SUV have been up 41 percent compared with 2012. The Panamera, which sells less than half the volume of the brand leading Cayenne, has seen sales slow through the first half of this year. Source: Automotive News (subscription may be required)
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