VW: Worldwide Car Parts Makers Up 75%

October 9, 2002 Leipzig, Germany - Bloomberg News reported that worldwide car-parts suppliers' sales will rise 75 percent over the next eight years, helping create jobs and expand the economy in Germany, an industry group said.

Revenue growth at component makers including Continental AG and Beru AG is expected to benefit the state of Saxony, where Porsche AG, Bayerische Motoren Werke AG and Volkswagen AG have invested in car plants, said Bernd Gottschalk, president of the German carmakers association, in a faxed statement.

German manufacturers make about 12.7 million vehicles a year, or a quarter of the world's production, the association said. The auto industry has created 130,000 jobs countrywide since 1994 and invested about 6 billion euros ($5.9 billion) in the eastern part of the country since former the East Germany was re-united with West Germany in 1990, Gottschalk said.

Eastern states' governments are seeking investment to boost the economy, which hasn't matched western German growth. The former East Germany has about 20 percent of the country's total population and accounts for about 10 percent of its economy.

Automobile-related employment in Saxony grew 9 percent to more than 18,000 jobs last year, according to the carmakers association.

"Germany needs more growth and employment," said Gottschalk.

Continental shares in Frankfurt were unchanged at 12.50 euros as of 3:22 p.m. after rising as much as 30 euros, or 2.4 percent, to 12.80 euros. Beru shares fell as much as 1.50 euros, or 3.8 percent, to 38.50 euros.

DaimlerChrysler shares dropped as much as 5.2 percent to 32.43 euros, while Volkswagen shares fell as much as 3.2 percent to 35 euros. Porsche shares fell 3.2 percent to 391 euros.