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.
Sao Paulo, Brazil – The luxury car market in Brazil is in its infancy compared to first-world markets, but it is growing fast. Five years ago, only 5,000 luxury cars were sold in Brazil. This year the number will top 100,000 and luxury marques are taking notice. Rolls-Royce just opened its first showroom in the … Continue Reading →
Car sales in Europe continue to slide in September, thanks to fears of recession and consumer nervousness generated by worries about the future of the euro single currency zone, and are likely to get worse before they get better, according to industry forecaster IHS Automotive. Ford Europe and GM Europe’s Opel-Vauxhall took a beating with … Continue Reading →
Even mighty Volkswagen is succumbing to Europe’s economic weakness and the slowdown in the growth of car sales in China. Last week at the Paris Car Show, VW chiefs expressed concern about sales prospects, but maintained their belief that profits in 2012 would be about the same as last year’s, while acknowledging the gathering storm. … Continue Reading →
PARIS – British sports car maker Jaguar is deadly serious about moving from being a niche manufacturer to a company that can one day challenge German hegemony in the luxury sector.
Americans are buying more gasoline electric hybrids, but Europeans still reckon diesel power is the best way to get value-for-money motoring, according to a report. The Automotive Industry Data (AID) news letter calculates that Western Europeans bought only 57,400 hybrids in the first half of 2012 for a market share of 0.9 per cent. That’s … Continue Reading →
General Motors’ Opel subsidiary could lose at least another $16 billion by 2024 and the only way to avoid this threat to its own future is to dump the European subsidiary as soon as possible, investment bank Morgan Stanley said.