GM's Docherty Sees "Very Scary Numbers" In Europe
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.
"GM has lost money in Europe since 1999..." Why the hell are they still there? On our nickle, no less. Afraid of losing market share? They are on a death march but don't want to drop out because they love a parade.
did GM ever make money in europe during the 'salad days' of 2004 when everything was right in the world?
I read on the intenets that all of our economic problems can be traced back to the fact that Obama is a Muslim. Who would have known?
Docherty is kidding, right? Did anyone at GM take a serious look at PSA's books? Please, someone, tell me how GM's top managers continue to pull out these boners. It's just sheer incompetence, and guess who's stuck with the bill?