European car market has yet to reach its lowest point, says Fiat CEO

Article by Christian A., on September 25, 2012

Fiat CEO Sergio Marchionne believes that the European car market has yet to reach the lowest that it can go. He said that the latest estimates for the auto demand in Europe did not surpass 12.5 million units, which he said is the second lowest level in the past two decades. During an industrial conference last Monday, Marchionne said that European car market right now is “a disaster.”

He said that it hasn’t bottomed out yet and that the prospects are bad. Moody's ratings agency said last week that it believes that light-vehicle demand in western Europe will decline by 3% next year with demand continuing to fall heavily in weak southern European markets such as Italy. In January, Moody's had predicted a 3% increase for the region.

According to Standard & Poor's, the western Europe market will decline by up to 7% this year and increase by only 0.4% in 2013. Standard & Poor's added that the economic slump is applying pressure on PSA/Peugeot-Citroen, Fiat and Renault, the ratings of which are all in the speculative-grade category. The agency said that the poor demand affected customers, together with austerity measures, intense price rivalry, and high costs.

Topics: europe, sales, fiat

If you liked the article, share on:

Comments

Recommended

British luxury automaker Aston Martin celebrates its new partnership with the Henley Royal Regatta sporting event by designing a one-off DB11 sports car that they recently revealed. The car explores...
by - June 28, 2017
The 2018 Dodge Challenger SRT Hellcat as we know, is the Demon's less powerful sibling, and there’s nothing wrong with that. But have you ever imagined how it would look...
by - June 28, 2017
Sorry Uber, but Handsome Cabs taxi company has something no one else can offer - a Lamborghini Huracan that can take their clients from Point A to Point B. This...
by - June 28, 2017
BMW saw a potential oil leak on the new M760Li, prompting them to recall the said vehicle last April. Today, a little over two months after issuing the first recall,...
by - June 28, 2017
Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 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