European carmakers have to consolidate to face the weakening market, says Fiat CEO

Article by Christian A., on January 13, 2012

Fiat CEO Sergio Marchionne said that European carmakers have to consolidate amid a weakening market related to persistent overcapacity and growing financial losses. Marchionne told the Financial Times that the automakers in Europe have started to “get tired of the beating.” The other automakers affected by its weaker market are PSA/Peugeot-Citroen SA and Renault SA, according to Marchionne.

He also told reporters last Wednesday that Fiat may have a third partner before its Chrysler unit has its initial public offering. The overcapacity has resulted to massive drops in the prices of the vehicles offered by European automakers.

He said that he hopes that his “colleagues” would realize that the current pricing strategies in Europe can’t be sustained in the medium to long term.

He mentioned that the only automakers that shut down plants in Europe are General Motors Co. and Fiat, which closed their Belgium and Italy plants, respectively. He pointed out that the French automakers didn’t even reduce their capacity. However, Frederic Saint-Geours, who oversees the PSA brands, said that conditions aren’t right for an alliance with another automaker. [source: Autonews]

If you liked the article, share on:

Topics: europe, ceo, fiat

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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