Sergio ‘Nostradamus’ Marchionne European Doomsday Prophecies
The US market is now riding high, therefore the concern is still Europe and Fiat’s boss, Sergio Marchionne, had some words of warning at the Detroit Auto Show. Marchionne, who also heads up American car firm Chrysler, drew parallels with what happened in the US industry when the economic crisis hit in 2007.
The boss of Italian car giant Fiat wants the EU to step in and help rescue Europe’s beleaguered automotive industry. As brands struggle with falling sales, Sergio Marchionne called for intervention on a European level and stop individual companies and countries making unilateral decisions which are not in the interests of a single market. Vehicle sales in Europe slumped from 16 million a year to just 10 million and the government stepped in to bail out automakers.
Marchionne, as chairman of the European carmakers’ association ACEA, has been lobbying the EU but said he is being ignored.
With sales forecast to decline for a sixth year in 2013, it is obvious that the industry needs to embark on significant retrenchment to better match the weakened state of demand from drivers. Marchionne argued that the absence of any co-ordination by the European Commission will lead to cuts being made in a ‘haphazard’ way, which will see governments put their national interests above the greater good of Europe’s car industry.
Marchionne reckons that ultimately the whole thing will unravel. If there are no cars to be bought, you can’t make cars. You don’t need to go to Harvard Business School to figure this out. Marchionne also said that Europe is ‘broken’ and its leaders are ‘fundamentally maiming’ the European automotive industry’s ability to recover.
Marchionne concluded by saying that he did not see the markets rebounding for some time, and certainly not in 2013.
HAPPY NEW YEAR TO YOU TOO SERGIO!
Unfortunately you are spot on. But please stop trying to please greeks and trojans. Italians need you more than Americans.