Detroit Bureau on Twitter

Posts Tagged ‘europe car sales’

European Car Sales Post Biggest Gain in Five Years

June numbers jump 15%.

by on Jul.16, 2015

The Nissan Sway concept at its Geneva Auto Show debut. Nissan is ahead of Toyota in European sales so far this year.

Despite the threat of a Greek banking collapse and a breakup of the Euro Zone, European car sales posted their biggest gain in five years, surging 15% in June.

Marking the region’s 22nd consecutive month of growth, Europe has now seen an 8% rise in sales since the beginning of 2015, though volume is still well off from the industry peak. Nonetheless, the latest upturn is good news for an industry that has lost billions of dollars in the region and struggled with massive excess capacity.

Subscribe for Free!

“This is all good news if this trend continues,” said Carlos Da Silva, an analyst with IHS Automotive, who described the upturn as “robust” and “quite convincing.”


Ford Shares Plunge on Bad News About Recalls, Europe

But maker insists it is “well-positioned for long-term.”

by on Sep.30, 2014

Ford CEO Mark Fields, shown with the 2015 Edge, insists the maker's long-term prospects are solid.

Investors took a dim view after being given an inside look at Ford Motor Co, the maker acknowledging that its European turnaround will be delayed, while it expects to run up big losses in South America, as well – with earnings taking taking another $500 million hit due to recent recalls.

Ford shares closed Monday at $15.11, down about 7.5% on nearly three times the normal volume on the New York Stock Exchange, investors having to balance the maker’s short-term problems against the more upbeat, long-term potential outlined by new Ford CEO mark Fields and his top management team.

Your Trusted Source for News!

“Our long-term plan underscores the commitment we have to our One Ford plan, while accelerating our pace of progress, delivering product excellence and driving innovation in all areas of our business,” Fields said during a presentation to automotive analysts dubbed Ford 2020. “We remain completely focused on offering customers the freshest lineup of world-class vehicles to meet their needs.”


Ford “On Track” for European Turnaround

Maker betting on product blitz, cost cuts to be in black by 2015.

by on Jul.09, 2014

Ford's European chief Stephen Odell.

With the European automotive market showing signs of an upturn after its worst slump in a quarter century, Ford Motor Co. is growing increasingly confident in the aggressive turnaround plan it launched during the depths of the downturn.

The maker’s sales have been outpacing the overall industry recovery, and while some automotive analysts believe Ford of Europe might actually break even for 2014 the maker is, for now, sticking with guidance promising to “improve” its financial situation this year, while projecting “profitability” in 2015. Ford lost $1.4 billion in Europe last year.

Global Insight!

The plan is “on track,” said Ford of Europe president Stephen Odell, during a media roundtable on Thursday. “We are very, very pleased with where we are in our European transformation plan.”


Global Auto Industry on the Rebound

Smooth sailing ahead, analysts forecast.

by on Sep.23, 2013

Strong attendance at the Frankfurt Motor Show could signal an imminent upturn in the European market.

It’s been a tough few years for the auto industry, with the U.S. suffering its worst downturn in decades, Europe in a massive slump and even the booming Chinese market showing signs of a slowdown. But there should be smooth sailing ahead, industry analysts are predicting, as even hard-hit Europe shows signs of a rebound.

The U.S. is already having one of its biggest booms in years, and China’s car market is heating up again, Patrick Archambault, Goldman Sachs vice president of global research, said during a speech at the Society of Automotive Analysts, or SAA, conference in Detroit. The growth rates in worlds three big three markets will be in the “single digits” which is relatively encouraging, he said

Get a Free Subscription!

“There is nothing sinister lurking,” asserted Archambault. “The growth is still supported by the pent-up demand created during the down turn. The average age of vehicles has increased, creating what some people have referred to as a rolling scrapyard.”


Is There a Light at the End of the Tunnel for European Auto Industry?

Or is it another brush fire?

by on Sep.13, 2013

A crowd gathers at the Audi stand at the Frankfurt Motor Show. Automakers are hoping the big event will signal the end of Europe's worst car sales downturn in two decades.

With an estimated 70 all-new or significantly updated products and concept vehicles on display, the auto industry has big hopes for this month’s Frankfurt Motor Show – in itself a good sign considering the downright dour mood at other recent European auto shows.

It’s been a truly awful period for the Continental industry. Hammered by a devastating economic recession that came close to crushing the euro and even breaking up the European Union itself, car sales dipped to their lowest level in two decades during the first months of 2013.  But there have been signs of life this summer, particularly in the retail side of the market where not only are more customers returning to showrooms but they’re also spending more to opt up what they buy.

Your Global Auto News Source!

“We’re about to see the end of five years of decline,” predicted Carlos Ghosn, the CEO of the Euro-Asian Renault-Nissan Alliance, during a news conference at the Frankfurt Motor Show.

His assessment was shared by a number of competitors. But while there’s a growing sense of light at the end of the tunnel, some skeptics continue to wonder whether what they’re really seeing is just another brushfire.


Chrysler Grabs #1 Spot in Canada

Strong demand “North of the Border” offsets other problems.

by on Apr.04, 2013

Oh, Canada! Chrysler takes a rare lead.

Fiat/Chrysler boss Sergio Marchionne has had some tough times lately trying to launch production in China while hoping to revive a faltering deal in Russia. Then there’s the challenge of a crumbling European car market that has hammered the Italian side of the trans-Atlantic automaker – so it’s good to be getting a lift from one corner of the globe.

Chrysler is now the sales leader in Canada, nudging its way in the relatively small market past traditional industry leader General Motors, as well as rival Ford Motor Co. and Japanese giant Toyota. With its strong network of rural dealers, Chrysler’s unexpected dominance “North of the Border” serves to provide some credibility to Marchionne’s ongong efforts to build Chrysler/Fiat into a global power house.

Plug In with a Free Subscription!

(It also comes as a point of personal celebration for the Fiat/Chrysler CEO who grew up in Canada.)

Up until now, Marchionne’s efforts, while scoring some impressive results in the U.S., have still been greeted by a large measure of skepticism by analysts who don’t believe the American-Italian company can compete long-term.


Marchionne Wants to Complete Fiat/Chrysler Merger ASAP

Meanwhile “no glimmer of hope” for European industry turnaround this year.

by on Mar.06, 2013

Fiat/Chrysler CEO Sergio Marchionne sits on a new LaFerrari during the supercar's Geneva preview. Ferrari Pres. Luca di Montezemelo is in the background.

Sergio Marchionne, the CEO of both Fiat and Chrysler, wants to finish merging the two companies as soon as possible – though other shareholders may make that a difficult task to complete without first taking the U.S. maker public.

During a news conference marking the first day of media previews at the Geneva Motor Show, meanwhile, Marchionne offered up a glum assessment for the worsening crisis the auto industry is facing in Europe, concluding he does not see a “glimmer of hope” for a turnaround in the market this year.

Feed Your Need for News!

Shortly after Fiat took control of Chrysler, following the American maker’s emergence from bankruptcy in 2009, it appeared likely there would ultimately be a public stock offering. Marchionne has repeatedly delayed that move and now says he’d like to skip it entirely, telling reporters in Geneva “It’s the right thing to bring these two organizations together,” and suggesting Fiat has the “availability of funding to try and close this transaction” in short order.


Peugeot Drops $6.7 Bil for 2012

Debacle raises new concerns about alliance with GM.

by on Feb.13, 2013

Peugeot's Onyx Concept at the Paris Motor Show. The maker is hoping to rebuild demand with new product.

Hammered by plunging sales and massive excess capacity, struggling PSA Peugeot Citroen has revealed it lost €5.01 billion, or $6.74 billion, last year raising further concerns about its long-term health – and about the viability of a partnership the French automaker has formed with General Motors aimed at turning around both of their troubled European operations.

The heavy loss – compared with a €588 million profit for 2011 — is compounding concerns that the French government might move to take a stake in Peugeot, the country’s dominant automaker. The new Socialist administration is already on the hook for a €7 billion guarantee it approved last year for the car company’s financial services arm.

Your Power News Source!

European car sales have continued plunging as Continental bureaucrats struggle to solve a nagging financial crisis, hitting their lowest level since 1995 last year. Most makers have taken a hit, some slipping deeply into the red, but none as sharply as Peugeot.  Compounding the maker’s problems has been a significant increase in steel and other raw materials and components.


BMW Earnings Up 14% Despite European Slump

But CEO warns of “headwinds” ahead.

by on Nov.07, 2012

BMW CEO Reithofer sees growing trouble ahead as the European market continues to struggle.

Despite the weakening European economy, BMW AG posted another strong quarter, with earnings up 14% but expected to slow in the months ahead.

The world’s largest premium automaker said its earnings before interest and taxes came to 2 billion Euros, or $2.6 billion, between July and September, led by growth in the U.S. and China as well as by the strong performance of its lending subsidiary. That was well ahead of the 1.74 billion Euros consensus from industry analysts. Net income was up 16%, to 1.29 billion Euros.

Feed Your Need for News!

Nonetheless, Chief Executive Norbert Reithofer warned that conditions were weakening across its home markets in Europe and could offset gains in other markets.

“Like the rest of the sector, we are now beginning to feel some headwind,” he said in a statement. “We have to acknowledge that we are all facing dramatic challenges and uncertainties in the global economy today.”


Opel Slashes Work Hours at 2 Key Plants

Bigger reorganization in the works.

by on Aug.24, 2012

Opel continues to flounder as sales plunge.

With its sales down 15% for the year and the situation likely to get worse, General Motors’ floundering Opel brand will slash production at two of its key German plants.

Several thousand workers will be idled for at least 20 days through the end of the year, the maker announced after reaching an agreement with its union, the powerful IG Metall.  The move is likely the first in a series of steps that Opel will take as it heads towards a broader reorganization being crafted by GM Vice Chairman Steve Girsky, who was named interim chief of European operations earlier in the year.

Your News Source!

The European automobile market is declining dramatically,” Opel’s head of personnel, Holger Kimmes, said in a statement explaining the company’s need to slash production.

GM lost $747 million last year on its European operations and Opel was a primary factor in a 40% slide in the maker’s second-quarter 2012 profits.  In all, Europe is expected to run up losses of as much as $2 billion for GM for all of 2012.