Daimler, Porsche show that European car market is at its worst condition

Article by Christian A., on September 24, 2012

Daimler and Porsche have offered evidence that the European car market, which is at its worst condition in 17 years, has had an impact on the luxury brands, amid a more widespread recession that has been felt by southern Europe to Germany. Daimler said that Mercedes-Benz Cars’ operating profit will decrease this year, lowering a previous target that matched the 2011 figure.

Meanwhile, Porsche is planning to produce fewer than the 155,000 cars and SUVs initially targeted for 2013. So far, Mercedes, Porsche, BMW and Audi have not been hurt as much as Fiat, PSA Peugeot Citroen and Renault by the drop in sales. The German automakers had the support of a strong domestic market and the rising exports to China and the U.S.

But now, there are signs that the German market is weakening. Arndt Ellinghorst, a London-based analyst at Credit Suisse Group AG, said that premium brands won’t be immune from pricing trends if this downturn persists longer.

He explained that the biggest problem is Europe’s pricing environment as incentives would spread from Italy, Spain and France to Germany. Last August, European auto sales fell by 8.5% -- the steepest decrease since February, according to ACEA industry association on September 18.

The group has a prediction that deliveries in Europe will reach a 17-year low in 2012. In August, German car registrations decreased by 4.7%, driving the eight-month sales figure to a 0.6% decrease.

Tougher measures are being taken by the volume automakers in the region that suffered the most due to the declining European market. Peugeot recently said that to raise cash, it will sell a majority stake in its trucking unit. An insider said that Fiat's volume brands are terminating 20% of management jobs in Europe.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries