I always get a little dismayed whenever I hear a car company talking about sales volume targets.
Yes, sure, reasonable sales targets are OK. Acceptable sales targets. If Toyota wants to say they’re going to sell one billion Camry units this year because they sold 997 million last year, that’s fine with me. If Honda wants to say they’re going to sell 950 million Accords this year because they’re contractually obligated by a higher power to slightly undersell the Camry, that’s fine too. And if Dodge wants to say they’ll sell 100,000 Grand Caravans this year, of which 99,000 are going to Enterprise, and the remaining 1,000 are going to people who don’t know any better, I guess I can accept that.
But I’ve never really understood why automakers set insane volume targets that keep them desperately reaching for sales for the next few decades.
Nissan-Renault CEO Carlos Ghosn said today that he does not expect any sales growth in Europe over the next three to four years. He is not giving up on growth, and said that most will come from higher demand in the United States and China, Reuters reports. (Read More…)
Low cost cars? Who needs them. BMW’s CFO Friedrich Eichiner thinks that the premium segment is where the growth is. Eichiner projects the global auto market to go basically sideways by growing 4 percent in 2012. He expects the premium segment to grow twice as fast at 8 percent. That according to an interview given to Munich’s Süddeutsche Zeitung today. Of course that growth is not spread evenly around the world. Eichiner predicts that the European car market will remain flat this year. Growth potential is seen in the U.S. and China. (Read More…)
“We can’t make cars as fast as they sell in China,” said an old friend of mine last night on the phone from Wolfsburg. He works at Volkswagen, the company that fights with GM for the title of King of the Middle Kingdom. I wanted his opinion on the sudden reduction in Chinese car sales. His answer? “What reduction? We are building three new factories in China, and we better get on with it.” He is right. If they don’t hustle, the competition will pour concrete faster than Volkswagen does. (Read More…)