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Are the Big Three (GM, FIATY.PK, F) exiting Europe fast enough? Another month of double-digit...

Are the Big Three (GM, FIATY.PK, F) exiting Europe fast enough? Another month of double-digit (Y/Y) declines in registrations on the continent and ongoing losses don't even tell the whole story. It's a case of the rich getting richer and the poor getting poorer with German automakers Daimler (DDAIF.PK), BMW (BAMXY.PK), and Volkswagen (VLKAY.PK) on the right side of the equation and Detroit's trio stuck in the mud.
Comments (4)
  • Tdot
    , contributor
    Comments (3492) | Send Message
     
    What does "exiting Europe" mean? Europe is certainly in an economic slump, arguably due to over-extension and traditions of heavy entitlements, and the automotive industry needs to aggressively restructure and resize to be profitable at current volumes, but exactly who is exiting? Certainly not the Detroit Three.

     

    Closing an outdated and unprofitable factory or two, and moving the production to a potentially profitable but underutilized factory, does not constitute exiting the market.

     

    Europe's automotive market is still larger than the Americas, while Asia represents the third (and even larger) leg of the stool. Any automaker that intends to be "global" must be actively participating in all three major markets.
    14 Dec 2012, 10:27 AM Reply Like
  • Augustus9
    , contributor
    Comments (376) | Send Message
     
    Why are you making more sense than the author? rhetorical
    14 Dec 2012, 12:33 PM Reply Like
  • frogola
    , contributor
    Comments (75) | Send Message
     
    how are the European company's getting richer.you would think that they were even more invested in European economic problems.
    14 Dec 2012, 12:37 PM Reply Like
  • Tdot
    , contributor
    Comments (3492) | Send Message
     
    Maybe in terms of market share in the shrinking market. There is a nationalistic tendancy to shriek "Buy (name your Nationality here)" in Europe in bad times, just as there has been in America.

     

    Meanwhile, Germany (home of BMW, Daimler/Mercedes, and Volkswagen) has been relatively uneffected by the economic woes in Greece and elsewhere in Europe.

     

    In addition, BMW and Mercedes sales may be holding steady if not improving, because the sort of folks that can afford them are not the sort that are finding themselves on the unemployment compensation rolls; and there is considerable support for the brands in the recovering US market.

     

    Meanwhile Volkswagen is rapidly expanding globally with overt intentions of becoming the world's largest automaker, thus diversifying aggresively into growth markets. Other automakers, which are not so well globalized, are falling behind with excessive capacity in shrinking markets, and little or no capacity in growing markets.
    14 Dec 2012, 02:09 PM Reply Like
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