Some Pre-Attack Optimism in Frankfurt

Prior to hearing of the terrorist attack on the U.S., Franz-Josef Paefgen, chairman of the Board of Management of Audi AG, was telling journalists at the Frankfurt Motor Show that 2001 was shaping up to be the most successful in the company's history. That despite the stumbling of the two biggest markets of the world: Europe (where home market Germany is “persistently weak”) and the U.S. Before news of the attack on America, Mr. Paefgen says Audi deliveries through August are up 9% and should reach 700,000 by year-end. Similar optimism was being expressed by Porsche AG officials, confident the carmaker could continue to be “the most profitable carmaker in the world.” Again, prior to hearing the tragic news from the U.S., Porsche executives foresaw no downturn in demand for its products in 2002 in the U.S. and other markets. The expectation was the introduction of the Cayenne sport/utility vehicle in the second half of '02 would boost the bottom line, and the current annual production rate of 25,000 units “will not be enough.”