Auto makers are losing money on every car they produce in Europe, Philippe Varin, chief executive of PSA Peugeot Citroen, told journalists at the Paris auto show today, a situation he called unsustainable.
“The overcapacity affecting European car makers is set to last and the only way to resolve the problem is to reduce capacity,” he said.
He also said Peugeot expects the European market for cars and light commercial vehicles to contract by about 8% this year. That is more than the 5% decline that was projected earlier this year. The company’s outlook for the next two or three years is for sales to remain flat.
Fiat CEO Sergio Marchionne has been urging his regional counterparts to develop a comprehensive plan to reduce overcapacity throughout the region. Volkswagen and the other German carmakers have resisted such moves.
“It is unclear if all carmakers will survive without governmental help,” said Volkswagen Chief Financial Officer Hans Dieter Poetsch before the Paris Motor Show. “Especially carmakers in southern Europe that produce small cars will be affected.”
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
