Vw doesn’t think that Europe needs help from Brussels to close factories despite Marchionne’s call

Article by Christian A., on March 24, 2012

Fiat CEO Sergio Marchionne is urging the European Union to intervene and to remove obstacles to plant downsizing and closures. In response, Volkswagen's sales and marketing boss Christian Klinger said that Europe's car industry doesn’t need any assistance from Brussels to shut down its factories. He said that instead of putting the blame on overcapacity for their problems, the automakers should be boosting their competitiveness.

In other words, Klinger isn’t supporting the stand on excess capacity. Klinger made these comments last Thursday at a briefing organized by French trade publication Le Journal de l'Automobile in Paris.

What he is saying proves that automakers do not agree with each other on how to handle the structural issues with the European industry. Marchionne, who heads the Brussels-based Association of European Automakers (ACEA), has made demands for the removal of these impediments to job cuts and plant closures. Fiat counterpart's stance has the support of PSA/Peugeot-Citroen CEO Philippe Varin.

Marchionne said a few days ago that the EU has to be involved in a 'painful' restructuring for European companies such as in plant closures since it won’t happen if they rely on the national countries. He believes that plant closures need to be distributed across countries and producers. Klinger said that ACEA doesn’t have a position on this. He thinks that asking EU for help is transferring the responsibility to Brussels, which has “nothing to do with it."

VW was the only major automaker to remain profitable last year at its core European operations. Its regional car deliveries rose by 7.8 percent even as the overall market had a 1.4% drop. PSA's sales fell by 8.8 percent while Fiat had a 12 decline. [source: Reuters]

Topics: vw, europe

If you liked the article, share on:

Comments

Recommended

Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 22, 2017
Over a decade ago, Pagani took the Zonda to the Geneva Motor Show. The Zonda hypercar was then set to retire in 2013 together with the track-focused Revolucion. But here...
by - August 22, 2017
The newest Porsche Cayenne is scheduled be unwrapped by the end of the month after completing endurance tests worth 2.7 million miles. Since we are just a few weeks away...
by - August 22, 2017
This is the time of the year when automakers give us teasers and previews of their upcoming models. Now, it seems like BMW is ready to unveil the M5 (F90)...
by - August 22, 2017
It is quite common to revive classic cars if you have a lot of extra money. Models like the Jaguar XKSS and Aston Martin’s DB4 GT have been upgraded to...
by - August 21, 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