You can’t have a conversation with any group in the automotive industry without a shaking of heads and sad looks agreeing, that, yes, the young are just not interested in cars anymore. But that’s not true, according to a new survey from management consultants McKinsey & Co. On the contrary, car ownership is still seen … Continue Reading →
News and commentary on the auto industry and the vehicles they're producing
For the second time in a month, developments with the Peugeot-GM alliance were reported in the media as deepening the relationship, when a closer look showed that might not be the case.
China has been like a license to print profits for the German luxury car manufacturers, but 2013 looks likely to be the peak year for this easy money.
News that the General Motors alliance with Peugeot-Citroen of France has scaled back some cooperation plans means that this combination either has limited ambitions, or that the partners have differing visions of what can be achieved, according to Deutsche Bank.
Germany’s Volkswagen could have see its European market share accelerate to about one third by 2020 if present trends continue, while GM’s Opel-Vauxhall and France’s Peugeot-Citroen will be in mortal danger, according to Bernstein Research analyst Max Warburton.
European car sales are down sharply this year, will fall a bit more in 2013, and are unlikely to reach pre-recession heights any time soon as the appetite for new cars and driving, peaks and recedes. There is still a faint possibility that European governments might come to the rescue with another scheme to finance … Continue Reading →
German premium carmaker BMW seems to have a license to print money as booming China and U.S. sales lit up its bottom line in the third quarter, but even this financial powerhouse is beginning to feel the chill wind from Europe. 2012 profit targets look secure, but next year looks questionable. Europe, now officially in … Continue Reading →
General Motors Europe will still be losing between $1 billion and $1.3 billion a year through 2016, despite the company’s target of breaking-even by mid-decade, and more cost cutting actions are likely, according to investment bank Morgan Stanley. Parent company General Motors’ success is threatened by continued losses at Opel, and Morgan Stanley analyst Adam … Continue Reading →
Fiat should grit its teeth, sell its Ferrari supercar subsidiary, and use the estimated $3.9 billion proceeds to buy the rest of Chrysler and pay down some of its burgeoning debt, say some investors. But others believe that Fiat-Chrysler’s new strategy and targets will account for so much capital spending that the purchase of the … Continue Reading →
While unions called Ford Europe’s action to shut plants and curb losses a betrayal, investors lauded the company’s moves as bold and necessary, and hoped that more financially pressed auto makers would follow suit.