Ghosn: Beware Of A Drop In Europe

Bertel Schmitt
by Bertel Schmitt

Renault and Nissan chief Carlos Ghosn continues to prepare the battlefield of world opinion for a drop in Europe. According to Ghosn, Automobile sales in Europe could decline two to three percent. For Renault’s home market, he expects a drop of five to six percent, Ghosn said in an interview with France Inter radio:

“It’s going to be tough for everyone, not just for Renault. What really worries us is France, as we’re very sensitive to the French market.”

For 2011, Renault reported a 5.7 percent drop in sales in Europe, which was offset by a 19 percent gain elsewhere. Renault’s global sales rose 3.6 percent to a record 2.7 million units.

A soft Europe may be tough for everyone, but for some in particular. Opel and Fiat come to mind. Opel is for all intents and purposes limited to the European market, and will take the full brunt of a drop in sales. Fiat is heavy in Europe, and especially heavy in southern Europe, which goes through serious problems. Volkswagen, BMW, Daimler are exposed, but can more than make it up with exports to and sales in foreign markets. A soft Euro converts into high profits at home.

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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 3 comments
  • Chicago Dude Chicago Dude on Jan 24, 2012

    I read your Ghosn stories for the fantastic photos of Ghosn's emotions and am saddened that there is only one photo.

  • Ronnie Schreiber Ronnie Schreiber on Jan 24, 2012

    At the NAIAS in a press gaggle, someone asked Sergio Marchionne what he thought about sale in Europe and he said that they would be at best flat for the next couple of years at least.

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