Peugeot, Ford Europe and Fiat lost $4billion this year

Posted on Tuesday, 2 October 2012 , 13:10:35 byEmil

Filed under fordgmpeugeotfiatusamericaneuropesalesvwPeugeotEuropeanFordGMFiat

Peugeot, Ford Europe and Fiat lost $4billion this year


Times changed for General Motors, Chrysler and Ford as apparently the three have near-record profits, unlike earlier when troubles were everywhere. Unfortunately the storm has not past yet. Their European branches are not doing well thanks to the European debt crisis, but let us talk numbers. Apparently Opel / Vauxhall, PSA Peugeot Citroen, Ford of Europe and Fiat will loose a combined $4 billion only this year. Why? Sales have the lowest level since 1995 and the bad news is that things do not seem to improve any time soon, so a very long and hard recovery will be a must.



The carmaker will have to take very drastic measures and maybe follow the example of their North American colleagues and shut down plants and finish dealership contracts; mainly anything they can do just to reduce their losses. Good news for the employees though. The European governments will not take this option. By closing the plant, the unemployment rate will increase and this will just worsen the crisis. The unions created by the workers here in Europe are stronger and more decided that the ones in the US. Another good thing is that the European branches also have some cash reserves and credit lines so it is not all black. It is more difficult for the markets found in the South and West part of Europe, but not all have big problems.



VW, for example is doing just great, operating at 93% of their capacity. Fiat has to rethink their strategy and stop relying on its home market, because it started to decrease. Opel lost $16 billion in the past 12 years, but GM, apparently has no plans of getting rid of it. They actually have high hopes with the PSA alliance, thinking they will manage to save up to $2 billion. Even though Ford Europe plans to launch 15 new models, its capacity is still low.



Peugeot, Ford Europe and Fiat lost $4billion this year image Peugeot, Ford Europe and Fiat lost $4billion this year image
Peugeot, Ford Europe and Fiat lost $4billion this year image Peugeot, Ford Europe and Fiat lost $4billion this year image
Peugeot, Ford Europe and Fiat lost $4billion this year image Peugeot, Ford Europe and Fiat lost $4billion this year image