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

Article by Christian Andrei, 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

Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
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