GM’s Susan Docherty, who is in charge of Chevrolet Europe, is shocked by GM alliance partner PSA Peugeot Citroen. PSA, along with Fiat, are producing “very scary numbers” with discounts of as much as 30 percent off gross sale prices, Docherty told Bloomberg. Opel’s numbers can be even scarier.
Sales were down 8.9 percent across the EU in August , and the cars that sell sell at murderous discounts. According to stats by Automobilwoche [sub], the average discount of the 30 most popular cars stood at 18.9 percent in Germany. The Ford Fiesta changed hands at 34.9 percent off list, the Opel Astra at 34.8 percent, the Opel Corsa at 30.9 percent, and the Renault Clio at 30.2 percent.
“Nobody can make money in Europe when you’ve got incentives at that level,” said Docherty. GM has racked up $16.8 billion in losses in Europe since 1999. GM posted a first-half loss before interest and taxes of $617 million in Europe, and wrote down $590 million of goodwill, says Bloomberg. Ford is projecting a loss of more than $1 billion in Europe this year.