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We told you the other day about the Alix Partners study that says the American auto industry is not going to boom the way it did during the last decade. Now, Alix Partners weighs in on Europe — and the picture isn’t pretty. It warns European carmakers are especially vulnerable to economic unrest because they haven’t taken the steps required to eliminate a huge problem with overcapacity.
As if any proof was needed, Ford said Thursday that it expects its international losses in the second quarter will be triple those of the first quarter. Bob Shanks, Ford’s chief financial officer, told The New York Times it would consider closing an assembly plant in Europe if demand continues falling. Ford lost $190 million overseas during the first quarter, most of it because of losses in Europe. In a filing with the Securities and Exchange Commission, Ford said its second quarter overseas losses could be as much as $570 million.
3 Reasons Why There Won't Be A Car Sales Boom Micheline Maynard Micheline Maynard Contributor
Why Ford Needs To Worry Joann Muller Joann Muller Forbes StaffMeanwhile, General Motors CEO Dan Akerson said in Chicago Thursday that he’s concerned that weakness in Europe will affect his automaker’s second half results. GM is in the midst of a restructuring in Europe, where it has lost $16.4 billion since 1999, according to Bloomberg.
If it were up to Alix Partners, carmakers that operate in Europe would jump on their problems — and quickly. In its study, the consulting firm estimates that there are 26 million units of excess capacity, or the equivalent of 40 assembly plants. The situation threatens European companies’ profitability, which is already under pressure because of fears over the economy.
” If there’s some problem related to the Euro or the economy in Greece or Spain, it’s going to get even worse than this,” says John Hoffecker, who heads Alix’s automotive practice.
Alix Partners says European companies have to keep their plants running at least 75 percent full in order to break even. Among the industry’s 10 major companies, it says five car makers — BMW, Daimler, Hyundai, Volkswagen and PSA — are above that level. But five others — Renault/Nissan, Ford, Opel, Fiat and Toyota — are operating below it.
By contrast, plants in the United States are running at about 90 percent capacity, due to the deep cuts the carmakers made between 2007 and 2011. In that time, the companies closed 18 factories. In Europe, however, carmakers closed only three plants and they continue to open new ones in Eastern Europe as well as Russia. “They never fundamentally restructured their industry,” said Hoffecker.
The overcapacity comes at a time when the European market mix is shifting precipitously. In 1990, volume manufacturers controlled 85 percent of the car market. Premium manufacturers like BMW and Daimler held 13 percent, and value manufacturers selling entry level cars had just 2 percent of the market. Now, premium manufacturers have 16 percent, value manufacturers have 20 percent, and there’s just 63 percent left for the middle of the market.
Hoffecker thinks the value market will continue to grow in Europe, as customers face financial pressures, and as more players pour in from around the world. As that happens, the most likely survivors are those who can get their capacity in line with demand
http://www.forbes.com/sites/michelinema ... -meltdown/
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We told you the other day about the Alix Partners study that says the American auto industry is not going to boom the way it did during the last decade. Now, Alix Partners weighs in on Europe — and the picture isn’t pretty. It warns European carmakers are especially vulnerable to economic unrest because they haven’t taken the steps required to eliminate a huge problem with overcapacity.
As if any proof was needed, Ford said Thursday that it expects its international losses in the second quarter will be triple those of the first quarter. Bob Shanks, Ford’s chief financial officer, told The New York Times it would consider closing an assembly plant in Europe if demand continues falling. Ford lost $190 million overseas during the first quarter, most of it because of losses in Europe. In a filing with the Securities and Exchange Commission, Ford said its second quarter overseas losses could be as much as $570 million.
3 Reasons Why There Won't Be A Car Sales Boom Micheline Maynard Micheline Maynard Contributor
Why Ford Needs To Worry Joann Muller Joann Muller Forbes StaffMeanwhile, General Motors CEO Dan Akerson said in Chicago Thursday that he’s concerned that weakness in Europe will affect his automaker’s second half results. GM is in the midst of a restructuring in Europe, where it has lost $16.4 billion since 1999, according to Bloomberg.
If it were up to Alix Partners, carmakers that operate in Europe would jump on their problems — and quickly. In its study, the consulting firm estimates that there are 26 million units of excess capacity, or the equivalent of 40 assembly plants. The situation threatens European companies’ profitability, which is already under pressure because of fears over the economy.
” If there’s some problem related to the Euro or the economy in Greece or Spain, it’s going to get even worse than this,” says John Hoffecker, who heads Alix’s automotive practice.
Alix Partners says European companies have to keep their plants running at least 75 percent full in order to break even. Among the industry’s 10 major companies, it says five car makers — BMW, Daimler, Hyundai, Volkswagen and PSA — are above that level. But five others — Renault/Nissan, Ford, Opel, Fiat and Toyota — are operating below it.
By contrast, plants in the United States are running at about 90 percent capacity, due to the deep cuts the carmakers made between 2007 and 2011. In that time, the companies closed 18 factories. In Europe, however, carmakers closed only three plants and they continue to open new ones in Eastern Europe as well as Russia. “They never fundamentally restructured their industry,” said Hoffecker.
The overcapacity comes at a time when the European market mix is shifting precipitously. In 1990, volume manufacturers controlled 85 percent of the car market. Premium manufacturers like BMW and Daimler held 13 percent, and value manufacturers selling entry level cars had just 2 percent of the market. Now, premium manufacturers have 16 percent, value manufacturers have 20 percent, and there’s just 63 percent left for the middle of the market.
Hoffecker thinks the value market will continue to grow in Europe, as customers face financial pressures, and as more players pour in from around the world. As that happens, the most likely survivors are those who can get their capacity in line with demand
http://www.forbes.com/sites/michelinema ... -meltdown/
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We told you the other day about the Alix Partners study that says the American auto industry is not going to boom the way it did during the last decade. Now, Alix Partners weighs in on Europe — and the picture isn’t pretty. It warns European carmakers are especially vulnerable to economic unrest because they haven’t taken the steps required to eliminate a huge problem with overcapacity.
As if any proof was needed, Ford said Thursday that it expects its international losses in the second quarter will be triple those of the first quarter. Bob Shanks, Ford’s chief financial officer, told The New York Times it would consider closing an assembly plant in Europe if demand continues falling. Ford lost $190 million overseas during the first quarter, most of it because of losses in Europe. In a filing with the Securities and Exchange Commission, Ford said its second quarter overseas losses could be as much as $570 million.
3 Reasons Why There Won't Be A Car Sales Boom Micheline Maynard Micheline Maynard Contributor
Why Ford Needs To Worry Joann Muller Joann Muller Forbes StaffMeanwhile, General Motors CEO Dan Akerson said in Chicago Thursday that he’s concerned that weakness in Europe will affect his automaker’s second half results. GM is in the midst of a restructuring in Europe, where it has lost $16.4 billion since 1999, according to Bloomberg.
If it were up to Alix Partners, carmakers that operate in Europe would jump on their problems — and quickly. In its study, the consulting firm estimates that there are 26 million units of excess capacity, or the equivalent of 40 assembly plants. The situation threatens European companies’ profitability, which is already under pressure because of fears over the economy.
” If there’s some problem related to the Euro or the economy in Greece or Spain, it’s going to get even worse than this,” says John Hoffecker, who heads Alix’s automotive practice.
Alix Partners says European companies have to keep their plants running at least 75 percent full in order to break even. Among the industry’s 10 major companies, it says five car makers — BMW, Daimler, Hyundai, Volkswagen and PSA — are above that level. But five others — Renault/Nissan, Ford, Opel, Fiat and Toyota — are operating below it.
By contrast, plants in the United States are running at about 90 percent capacity, due to the deep cuts the carmakers made between 2007 and 2011. In that time, the companies closed 18 factories. In Europe, however, carmakers closed only three plants and they continue to open new ones in Eastern Europe as well as Russia. “They never fundamentally restructured their industry,” said Hoffecker.
The overcapacity comes at a time when the European market mix is shifting precipitously. In 1990, volume manufacturers controlled 85 percent of the car market. Premium manufacturers like BMW and Daimler held 13 percent, and value manufacturers selling entry level cars had just 2 percent of the market. Now, premium manufacturers have 16 percent, value manufacturers have 20 percent, and there’s just 63 percent left for the middle of the market.
Hoffecker thinks the value market will continue to grow in Europe, as customers face financial pressures, and as more players pour in from around the world. As that happens, the most likely survivors are those who can get their capacity in line with demand
http://www.forbes.com/sites/michelinema ... -meltdown/
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Τα γκόλντεν μπόιζ ακόμα δεν μπορούν να καθίσουν σε καρέκλα μ' αυτό που έπαθαν στο χρηματιστήριο με την Πόρσε και τώρα άρχισαν άλλες ιστορίες.
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Σημαντικό
In 1990, volume manufacturers controlled 85 percent of the car market. Premium manufacturers like BMW and Daimler held 13 percent, and value manufacturers selling entry level cars had just 2 percent of the market. Now, premium manufacturers have 16 percent, value manufacturers have 20 percent, and there’s just 63 percent left for the middle of the market.
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Εκτος απο την Τογιοτα και την VW δε νομιζω οτι οι αλλες εταιρειες μαζικης παραγωγης εχουν σημαντικο λογο υπαρξης στην αγορα παντως...
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Ο χρήστης mikegr έγραψε:
Εκτος απο την Τογιοτα και την VW δε νομιζω οτι οι αλλες εταιρειες μαζικης παραγωγης εχουν σημαντικο λογο υπαρξης στην αγορα παντως...ελα ντε η renault και η fiat για παραδειγμα με 4 και 3 εκατομμυρια πωλησεις το 2011 τι να κλασουν...
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2 εκ. πουλαει η Τογιοτα μονο στην Αμερικη...
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Ο χρήστης mikegr έγραψε:
Εκτος απο την Τογιοτα και την VW δε νομιζω οτι οι αλλες εταιρειες μαζικης παραγωγης εχουν σημαντικο λογο υπαρξης στην αγορα παντως...Έχουν λόγο ύπαρξης και μάλιστα τεράστιο! Φαντάσου πόσο πιο φτωχή θα ήταν η αγορά χωρίς την Ford, Alfa Romeo, Renault, Peugeot, Fiat κλπ. Να οδηγείς μόνο Toyota ή VW είναι εφιάλτης! Μιλάμε για τα πιο άνιωθα αυτοκίνητα που υπάρχουν!
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Ο χρήστης mikegr έγραψε:
Εκτος απο την Τογιοτα και την VW δε νομιζω οτι οι αλλες εταιρειες μαζικης παραγωγης εχουν σημαντικο λογο υπαρξης στην αγορα παντως... -
Μη ξεχνάμε και την Opel
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Μόνο το 2011 είχαμε παραγωγή 59.929.016 αυτοκινήτων. Εντάξει ίσως πουλήσουν και οι άλλοι.
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Ο χρήστης mikegr έγραψε:
Εκτος απο την Τογιοτα και την VW δε νομιζω οτι οι αλλες εταιρειες μαζικης παραγωγης εχουν σημαντικο λογο υπαρξης στην αγορα παντως...Τοσο πολυ σε απογοητευσαν ολα οσα περασαν απο τα χερια σου;
'98 Peugeuot Rallye 106 16V
02 Mazda mx5 1.6
'03 996 4s
'00 360 Modena
Why The European Car Market Is Headed For A Meltdown