Manufacturers of cars that appeared to be stable at the onset of the financial crisis have lately acknowledged publicly that they are also in a 'crisis' as sales continue plummet. The CEO of Bmw, Norbert Reithofer, illustrated yesterday the situation to Spiegel magazine of Germany as "the worst crisis Bmw has faced in its history".
In spit of the dragging sales, it is the BMW's dependence on leasing that has put it in a very precarious position. The CEO of Daimler, Deiter Zetsche, meanwhile evaluated the present conditions as "the worst crisis since World War I".
CEO of VW, Martin Winterkorn, informed reporters that they "have never before seen this kind of crisis" saying further that "difficult cuts" maybe inescapable. However, these talks about critical problems are not limited to German carmakers.
Initially strong, Honda and Toyota, Japanese giants, are likewise openly airing serious apprehensions. Mitsuo Kinoshita, the vice president of Toyota expressed the situation as "an emergency of a magnitude we have never seen before."
It is also accepted by Honda that it will be "very difficult" to come up with its full-year profit forecast and is also reducing production by some 40,000 units in Japan. Analysts for the car industry say the most flexible auto manufacturers, which can adapt rapidly to plummeting demand, will be identified in the near future.