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Sergio Marchionne expects ‘hurricane’ on European car market

22 January 2013 10:12 No comments

Marchionne EU Sergio Marchionne expects ‘hurricane’ on European car market

You’d be tempted into thinking that things can’t get any worse than they were in 2012 on the European car market. But you’d be wrong, so says Sergio Marchionne. As CEO of Fiat and as president of the ACEA, he yesterday said to the Financial Times that we can expect even tougher times ahead before the market will somewhat recover.

We are even facing an implosion of the market if Brussels doesn’t take measures very soon, claimed the CEO. Not only because of the overcapacity, but also because several car manufacturers keep on producing at full strength (despite their overcapacity) while others are forced to cut their production. This leads to some kind of a ‘vacuum’, causing nobody to take the correct measures. The supply is simply increasing too rapidly, according to Marchionne. The total loss sums up to around 5 billion euros (6,68 billion dollars or 4,21 billion pounds) annually, making this an unsustainable situation. The Italians have been wondering for a long time now why Fiat is not investing in Europe, despite their decent financial situation. Marchionne seems to have answered them with this pleading…

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