Vw-Marchionne conflict gets back, this time on pricing strategy

Article by Christian A., on August 1, 2012

Volkswagen Group made a threat to withdraw its membership from the European auto industry group ACEA in light of comments by Fiat CEO Sergio Marchionne that VW is being too aggressive in its pricing strategy. This clash is an indication of just how the tensions in the industry are rising as sales decline in Europe. Marchionne criticized VW’s methods, saying that conditions are difficult enough in the European auto industry.

VW denied his claims. In a statement, VW's chief spokesman Stephan Gruehsem said that the comments are proof that Marchionne is not qualified to be ACEA president. He is calling for the Fiat CEO’s resignation and said that VW may even be leaving ACEA. Marchionne is the president of ACEA with a term of one year.

ACEA lobbies the EU on behalf of the auto industry. He vacated the position left by Daimler CEO Dieter Zetsche on Jan. 1. The members of ACEA are all the European automakers and companies like Ford, General Motors and Toyota that have manufacturing operations in the region. A new president is elected by the board each year.

In Thursday’s report on The International Herald Tribune about an interview with Marchionne, he said that the European auto market is the toughest he has ever had to deal with. He said, “It's a bloodbath of pricing and it's a bloodbath on margins.”

VW Group sales chief Christian Klingler denied Marchionne's comments about being aggressive. He said that VW is operating in a “competitive environment." Klingler said that the European auto market is faced with an "elevated risk," as competition has become more intense. He added that auto pricing in Europe is "tense" and "pressure" will persist in the coming months.

If you liked the article, share on:

Comments

Recommended

Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
The Audi A7 Sportback, whether you would like to call it a sportback or a four-door coupe, has always been a beautiful car. And this week, the 2019 model year...
by - October 20, 2017
The new 2018 Ford Mustang GT, when equipped with its optional Performance package, will be able to produce 460 horsepower. It also comes fitted with Michelin Pilot Sport 4S tires...
by - October 19, 2017
It’s not as if the Porsche 718 Boxster and Cayman are not already impressive cars. The automaker has just given us more reasons to love the twins. The 2018 model...
by - October 19, 2017
After months of dropping online teasers, Polestar finally reveals its very first production car virtually. The Polestar 1 is a two-door coupe that gets its design inspiration from the 2013...
by - October 19, 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