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Porsche to only build next Panamera in Leipzig?

Manufacture of the next-generation Porsche Panamera could be moving, if a report from Reuters is true. The current-generation Panamera range has its bodies welded together and painted at a Volkswagen facility in Hanover before being shipped to Leipzig where final assembly takes place.
According to Reuters, Porsche is looking to cut VW out of the equation and focus production of the Panamera in Leipzig. While this could cost 800 of the 14,300 workers at Hanover their jobs, it's not entirely clear what Porsche stands to gain by the move. It recently invested 50- million euros (about $680 million at today's rates) on a paint and body shop for its Leipzig factory, ostensibly so the facility could have Macan production underway by that car's spring 2014 on-sale date. If the facility was also designed with next-generation Panamera production in mind, then Porsche's decision to put all of its eggs in one basket could make a lot of sense. It currently ships the semi-completed Panameras from Hanover to Leipzig, a distance of around 160 miles by road, and presumably it's a costly and time-consuming process.
The Leipzig factory produced 27,000 Panameras last year, although it's unclear just what its production capacity really is. Besides the Panamera and the upcoming Macan, the factory also builds the Porsche Cayenne.

Porsche Macan to get four-cylinder engines

Porsche hasn't offered a four-cylinder engine since the 968 went out of production in 1995 - the better part of two decades ago. There'd been talk of a four-pot Boxster or an even smaller model to slot in below it, but while the latest intel indicates that Porsche is moving ahead with its four-cylinder plans, it's a different kind of vehicle that will get it first.
That, of course, would be the new Macan. Just revealed a few weeks ago at the LA Auto Show, the Macan crossover is being launched with a pair of twin-turbocharged V6 engines (a 3.0 with 340 horsepower and a 3.6 with 400 hp) and a six-cylinder turbodiesel with 258 hp. But smaller engines, according to emerging reports from Autocar and Auto Express, are on their way.
Word has it that Porsche is preparing a 2.0-liter turbo four with 280 horsepower and a diesel with the same displacement and cylinder count, engines that will power new entry-level Macan models that will slot in beneath the existing Macan S, Macan S Diesel and Macan Turbo. While the diesel is tipped to be ported over from the Volkswagen parts bin, the four-cylinder gasoline engine is said to be under development by Porsche itself, which could mean it will have a boxer layout.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury