Economist: Too many cars, too few buyers
Discussion
http://www.economist.com/node/21547788
Interesting read. The summary:
"Europe’s struggling volume makers have all been trying to move their brands upmarket, launching higher-priced small cars—such as Fiat’s new 500L minivan—in the hope of becoming as profitable as the German premium makers. This is another sensible idea. But moving upmarket takes decades, as Audi’s painstaking ascent since the 1980s has shown. Opel, Peugeot and Fiat don’t have that much time."
Interesting read. The summary:
"Europe’s struggling volume makers have all been trying to move their brands upmarket, launching higher-priced small cars—such as Fiat’s new 500L minivan—in the hope of becoming as profitable as the German premium makers. This is another sensible idea. But moving upmarket takes decades, as Audi’s painstaking ascent since the 1980s has shown. Opel, Peugeot and Fiat don’t have that much time."
Fiat doesn't need time - they have Lancia, Alfa Romeo, Chrysler, Maserati and Ferrari, all of which are (arguably) upmarket of Fiat and provide plenty of opportunity without having to make Fiat posh. A lot of Fiats are made in their cheap factory in Poland now anyway.
Peugeot will be fine - the French government will see to that - but Opel are in a tricky spot. Hopefully the Astra and Insignia will sell well in the USA as Buicks though, which will give them enough volume to survive.
Peugeot will be fine - the French government will see to that - but Opel are in a tricky spot. Hopefully the Astra and Insignia will sell well in the USA as Buicks though, which will give them enough volume to survive.
davepoth said:
Fiat doesn't need time - they have Lancia, Alfa Romeo, Chrysler, Maserati and Ferrari, all of which are (arguably) upmarket of Fiat and provide plenty of opportunity without having to make Fiat posh. A lot of Fiats are made in their cheap factory in Poland now anyway.
Peugeot will be fine - the French government will see to that - but Opel are in a tricky spot. Hopefully the Astra and Insignia will sell well in the USA as Buicks though, which will give them enough volume to survive.
Still doesn't bode well for Vauxhall/Opel as a brand. The likes of Kia are taking their volume/cheaper place.Peugeot will be fine - the French government will see to that - but Opel are in a tricky spot. Hopefully the Astra and Insignia will sell well in the USA as Buicks though, which will give them enough volume to survive.
Nursing a hemi said:
Davepoth: Did you read the article? e500m loss last year, reliant on the luck that Chrysler has (unexpectedly) been profitable, and looking for a partnership with another carmaker to try and take on VW.
Fiat (including Alfa) are right at the arse end of a model cycle. The Panda's about to be revised, Alfa only has two models on the go, and they're putting a big push on Lancia/Chrysler which doesn't go into those figures I think. 
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