European Auto Makers See Bleak Future

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By Trey Thoelcke Published
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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.”

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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