Crisis in Europe continues to hit carmakers around the world – although BMW bucks trend with record January sales
The crisis in Europe continues to hit carmakers around the world, as Nissan revealed tumbling sales and PSA Peugeot Citroën wrote down the value of its automotive assets by €3.9bn (£3.3bn) amid reports the French state might take a stake.
Luxury carmaker BMW, however, bucked the trend, selling more vehicles than ever before in January.
Nissan said sales in the third quarter slumped 35% from the previous year to ¥54bn (£370m), which it blamed on weak demand in Europe, China and the US. European sales dropped 16% in the quarter compared with the previous year, as demand slumped. Japanese carmakers have also been punished in China, where a territorial dispute set off anti-Japanese riots and boycotts last year.
Nissan's chief executive, Carlos Ghosn, said the company's performance did not meet management expectations. "This was primarily the result of difficult operating conditions in Europe for the entire industry, in China for Japanese carmakers, and in the US for Nissan."
French carmaker Peugeot, meanwhile, was the subject of a report that it could face some form of state ownership, after announcing a €4bn writedown on Thursday. Asked whether France might invest in Peugeot to support the struggling carmaker, budget minister Jérôme Cahuzac told a TV station: "It's possible. This company must not and cannot disappear and we must do what it takes for this company to survive."
However, Reuters quoted a source from the French finance ministry stating that a government investment in Peugeot was "not on the agenda." The source added that the company must focus on its joint co-operation agreement with General Motors. "The priority for the group is to pursue its recovery plan, to strengthen its alliance with General Motors and to continue its development."
Peugeot is among the companies worst hit by Europe's protracted slump in car sales. It is cutting 8,000 jobs and closing a factory at Aulnay outside Paris to stem losses of around €200m a month. The company slashed the book value of its plants and other automotive assets by 28% on Thursday, reflecting Europe's worsening market outlook. Chief financial officer Jean-Baptiste de Chatillon said: "There was a realisation in the second half that the crisis was going to be longer than expected."
But BMW – which also owns Mini and Rolls Royce – is powering ahead, with a 10% rise in sales in January, driven by strong demand for its mid-range saloon the BMW 3 series. Worldwide sales of Minis, also owned by BMW, hit an all-time high for January, with 15,900 vehicles delivered in the month.
Ian Robertson, BMW's head of sales and marketing, said the company managed to grow around the world, but that Europe remained a difficult market: "Looking ahead, we expect the headwinds in Europe to remain, however we are confident of healthy sales growth in other regions, especially Asia and the Americas." Reported by guardian.co.uk 4 hours ago.
The crisis in Europe continues to hit carmakers around the world, as Nissan revealed tumbling sales and PSA Peugeot Citroën wrote down the value of its automotive assets by €3.9bn (£3.3bn) amid reports the French state might take a stake.
Luxury carmaker BMW, however, bucked the trend, selling more vehicles than ever before in January.
Nissan said sales in the third quarter slumped 35% from the previous year to ¥54bn (£370m), which it blamed on weak demand in Europe, China and the US. European sales dropped 16% in the quarter compared with the previous year, as demand slumped. Japanese carmakers have also been punished in China, where a territorial dispute set off anti-Japanese riots and boycotts last year.
Nissan's chief executive, Carlos Ghosn, said the company's performance did not meet management expectations. "This was primarily the result of difficult operating conditions in Europe for the entire industry, in China for Japanese carmakers, and in the US for Nissan."
French carmaker Peugeot, meanwhile, was the subject of a report that it could face some form of state ownership, after announcing a €4bn writedown on Thursday. Asked whether France might invest in Peugeot to support the struggling carmaker, budget minister Jérôme Cahuzac told a TV station: "It's possible. This company must not and cannot disappear and we must do what it takes for this company to survive."
However, Reuters quoted a source from the French finance ministry stating that a government investment in Peugeot was "not on the agenda." The source added that the company must focus on its joint co-operation agreement with General Motors. "The priority for the group is to pursue its recovery plan, to strengthen its alliance with General Motors and to continue its development."
Peugeot is among the companies worst hit by Europe's protracted slump in car sales. It is cutting 8,000 jobs and closing a factory at Aulnay outside Paris to stem losses of around €200m a month. The company slashed the book value of its plants and other automotive assets by 28% on Thursday, reflecting Europe's worsening market outlook. Chief financial officer Jean-Baptiste de Chatillon said: "There was a realisation in the second half that the crisis was going to be longer than expected."
But BMW – which also owns Mini and Rolls Royce – is powering ahead, with a 10% rise in sales in January, driven by strong demand for its mid-range saloon the BMW 3 series. Worldwide sales of Minis, also owned by BMW, hit an all-time high for January, with 15,900 vehicles delivered in the month.
Ian Robertson, BMW's head of sales and marketing, said the company managed to grow around the world, but that Europe remained a difficult market: "Looking ahead, we expect the headwinds in Europe to remain, however we are confident of healthy sales growth in other regions, especially Asia and the Americas." Reported by guardian.co.uk 4 hours ago.