“The biggest problem for the industry is the complete meltdown of pricing discipline,”
Craig Trudell, Christian Wuestner And Mathieu Rosemain - BLOOMBERG
- September 27, 2012
General Motors Co. said Europe’s car industry will remain unprofitable at current vehicle pricing levels, while Volkswagen AG said some competitors are at risk of going out of business without state aid.
Competitors Fiat SpA and PSA Peugeot Citroen are producing “very scary numbers” with discounts of as much as 30 percent off gross sale prices, Susan Docherty, who runs European operations for GM’s Chevrolet unit, told reporters today at the Paris Motor Show. “Nobody can make money in Europe when you’ve got incentives at that level.”
Demand has plunged so much that deliveries continue to tumble, even with such large discounts. Although discounting in Germany is at the highest in more than a year, according to industry publication Autohaus PulsSchlag, car sales across Europe may fall to a 17-year low, the region’s main auto- manufacturing trade group has predicted.... [Read More]