Renault And Daimler Agree: Europe Meh, BRICS The Bomb

Bertel Schmitt
by Bertel Schmitt

While some analysts (who might be sitting on large quantities of GM and Ford stock ) already dream of a sales rate between 15 and 16 million cars by year’s end in the U.S., CEOs of European carmakers are less gung ho.

Renault does not expect the European new car market to return to 2007 levels “before 2016”, Automobilwoche [sub] reports.

Daimler’s Dieter Zetsche, in a second job also President of the European auto manufacturer association ACEA, also doesn’t see much growth for Europe. That as per another article in Automobilwoche [sub]. High unemployment and austerity programs by governments prompt customers to delay the purchase of new cars. As mentioned before, Europe survived carmageddon with minor bruises, and is better positioned to participate in massive growth elsewhere. According to Zetsche, worldwide car production reached 62 million last year. He expects worldwide car production to grow by 50 percent in the next 1o years.

Renault and Daimler see the BRIC countries (Brazil, Russia, India, China) as the drivers of growth, after car sales in the BRIC countries had quadrupled in the past 10 years. Zetsche also wants to “rely on the BRIC countries for growth.”

None of them mentioned the U.S.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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 2 comments
  • Cmoibenlepro Cmoibenlepro on Feb 03, 2011

    I agree about growth in China and (somewhat less) in India, but why is Russia counted with China? It is not as much a big market, with much less growth opportunities and more risk of government seizing up everything

  • Charly Charly on Feb 03, 2011

    People buy more cars in Russia than in India. That sounds like a good reason. Also theft isn't a problem. Selling cars three generation old isn't competive

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