Sergio Marchionne has been one of the most prolific alarmists regarding European overcapacity, and who can blame him? The economy is in the dumps in Fiat’s home market, as well as crucial export markets, and closing a plant would come with all kinds of blowback.
Not all automakers in Europe have too much capacity. BMW will invest $388 million over the next three years to increase capacity at its Mini plants in the UK, Reuters says. Read More >
Over the last 12 years, GM lost $16 billion in Europe, more than a billion each year. Ford is doing a bit better, but it sits on excess capacity of 300,000 units in Europe and expects a loss of $500 million to $600 million. Automotive News [sub] recommends to both: Pack up and leave. Says Luca Ciferri in AN: Read More >
Europe’s car market is slowly swirling down the drain. Sales in May were down by 8.7 percent. Five months into the year, the market is down 7.7 percent.
Europe’s best-selling cars are impacted disproportionately. Eight out of ten suffered double-digit percentage losses. Only one car managed a slight increase in May. Read More >
The European car market – if taken together, the world’s second largest behind China and before the U.S. – continues its slow drift to the bottom. Sales in May were down by 8.7 percent in the EU. This is the eighth month in a row that sales are in minus territory. Five months into the year, the market is down 7.7 percent. Read More >
To the people in the room the buyer of Saab the remaining assets of bankrupt Saab was known before the press conference started today at 1pm at the Saab showroom in Trollhättan. When Dalong “Kai Johan” Jiang takes a seat in the audience, and is joined by his Chairman Karl-Erling Trogen, it is clear what bankruptcy administrator Hans Bergqvist will announce minutes later:
“The buyer is the National Electric Vehicle AB.”
Jiang takes the microphone. He knows his audience and says what everybody wants to hear: “Electric cars powered by green electricity is the future and electric cars will be built in Trollhättan.” Read More >
Even after its death, Saab is still good for some excitement. Today, the Wall Street Journal breathlessly reported that an “electric-vehicle consortium buys Saab assets.” When you click on the link in Google, you get your assets handed to you via a rude 404: Page not found. The same is happening with many sites that reported a sale of Saab’s assets to a company called National Electric Vehicle Sweden (NEVS), which is as Swedish as chopsticks.
What is behind those missing links? Who is the nice man who goes thumbs up next to China Communist Party Polit Bureau member Li Keqiang? And why has he allegedly just bought Saab? Read More >
Brussels has bad news for Fiat and PSA, and by extension for Chrysler and GM. There will be no EU assistance for an orchestrated and painless capacity shedding, Financial Times Deutschland says. A report of an expert group puts European overcapacities at 25 to 30 percent. Fiat-Chrysler CEO Sergio Marchionne has been publicly lobbying for government support, PSA pressured the French government. As predicted here months ago, a lobby of German carmakers torpedoed any support from Brussels and is for Darwinian solutions instead. With carmakers at odds, European governments are happy that they don’t have to act. After all, there are more pressing problems in Europe. Read More >
Fritz Henderson could not save Saab.
Victor Muller could not save Saab.
Vladimir Antonov could not save Saab
Pang Qinghua could not save Saab.
Rachel Pang could not save Saab.
Now, Barack Obama is supposed to save Saab.
At least that’s how the Swedish metalworker union IF Metall sees it. Read More >
What was highly probable yesterday is definite: GM will shift production of the Astra compact from Germany to Ellesmere Port, England. Workers at the UK plant agreed nearly to a man and a woman (approval rate 94 percent) to a deal with GM that keeps Ellesmere Port open and that spells the near certain doom of Opel’s plant in Bochum.
Workers agreed to a four-year deal that freezes wages for two years, and that allows only moderate rises of around 3 percent for the following two years, Reuters heard from a source. The source also said: Read More >
Yesterday, we brought you the bad news about European auto sales in April. You are a gearhead, you don’t care about market share and percentiles, you care about cars! Here is how cars fared in Europe in April. Are you safely buckled-up? Read More >
Listening to the news from Europe, one thinks that there is chaos in the streets of Europe. Not yet. But Europeans are clearing room for chaos by buying fewer cars. 1,017,912 new passenger cars were registered in the EU, or 6.9 percent less than in the same month of 2011. Four months into the year, new registrations in the EU were 7.5 percent lower than a year earlier, the European manufacturers association ACEA reports. Read More >
Yesterday, Volkswagen sent out a gushing report, saying that group deliveries rose 6 percent in April and 8.6 percent January to April. Something smells in Wolfsburg. Let’s take a look. Read More >
Volkswagen’s CEO warned its shareholders of a “very demanding year,” what with the European debt crisis depressing auto markets and growth in growth markets slowing. What is growing is risks, said Winterkorn at VW’s annual general meeting. Oddly enough, it is Volkswagen’s competitors who should be very worried. Read More >
Record new car sales are not the news one does expect from Europe. But those are the news from Germany.
One by one, German automakers – with the notable exception of Opel – are reporting unheard-of numbers. Let’s have a look. Read More >
Recent Comments