Sergio Gives Unsolicited Advice To EU And China Goverments

Bertel Schmitt
by Bertel Schmitt
sergio gives unsolicited advice to eu and china goverments

Fiat and Chrysler CEO Sergio Marchionne repeated its pleas that European governments should do something about the overcapacity in the region. Being in Shanghai when he said that, he recommended that the Chinese government does the same. The governments likely won’t be enthusiastic about Sergio’s advice.

Said Sergio while the Wall Street Journal took notes:

“There is a demand-supply imbalance in Europe, and that needs to be addressed, which has been the reason why I have advocated European Union intervention. Somebody needs to control the process whereby this gets done before we end up creating nationalistic responses that are ultimately going to run right in the face of rational economic choices.”

Marchionne has been demanding that European carmakers take an equal haircut in capacity, something that had been roundly opposed by other EU carmakers, especially those in Germany. Brussels also has shown the cold shoulder to Marchionne’s suggestions. In the meantime, manufacturers like Ford started reducing capacity without government aid.

Overall car sales in Europe in 2012 are expected to be around 12.5 million vehicles, the lowest level since 1993.

Marchionne also suggested that Beijing should streamline its fragmented car industry that suffers from overcapacity and declining growth.

Marchionne repeated his old prediction that after a round of consolidation, only five or six global auto makers would remain. “I think you want at least one of those players to be Chinese,” he told the Chinese audience.

China currently has more than 100 carmakers. In 2011, some 50 carmakers made most of the 80 million automobiles built worldwide. Fiat recently opened a new plant in Chongqing, China, and is planning a few more for the coming years.

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  • The Doctor The Doctor on Oct 29, 2012

    If Marchionne could market Fiat's cars as well as he markets himself then there might be come hope for the company.

  • Kolbenkopp Kolbenkopp on Oct 29, 2012

    I dunno, the consolidation is happening on a business side through mergers, the extinction of companies and the need to save by platform/engine/systems sharing. What is perceived choice in reality is much less IMO. Let's play "who is selling a car one might consider buying new with own money". Here's my personal take (I'm based in Germany if that matters); * VAG Group: Zuffenhausen stuff can't afford and a bit dull. The rest I find really boring. A2 could now sell, why not make some Vorsprung durch Technik again? * Renault Group: Cup Clio has just been neutered. GT-R expensive, 370Z lacks finesse. * PSA Group: nothing. Wake up guys, ask the gents that made your 80es stuff if they fancy a break from retirement? * BMW Group: nothing. Replace the monkeys that do the styling? I want a spirtual successor to the E30/36. * Mercedes: nothing. Gets worse every year. * Ford: next MX-5 possibly. Focus ST perhaps. Mazda 2 needs an engine. * Honda: nothing. When will they realize the CR-Z needs more power or less weight? * GM: nothing. Where's today's C20XE? Give Mr. Indra a ring? * Toyota: GT-86, at least test drive level of wantage. * Subaru: see Toyota. * FIAT Group: If the 4C gets built and comes in near weight / price target I'm in. No chance that is happening though. What did you do to Lancia, you "§$!"§!*?! You had such a winner with that Fulvia concept! Rest, meh. Maranello not my style, even if I could afford. * Mitsubishi: what happend to the Ralliart Colt? And to Ralliart for that matter? * JLR: to young for an XF. Rest meh. * Hyundai: nothing. * Kia: nothing. * Suzuki: Swift GT perhaps. Kizashi to close to GT86 price wise. * Geely: Why is C30 T5 is 1.6 tons? Rest also meh. * Lotus: basic Elise to slow for the price, rest also to expensive. * Aston: if I win the lottery. And I think that's it. Good thing there's something like a used market.

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  • Alan I would think Ford would beef up the drive line considering the torque increase, horse power isn't a factor here. I looked at a Harrop supercharger for my vehicle. Harrop offered two stages of performance. The first was a paltry 100hp to the wheels (12 000AUD)and the second was 250hp to the wheels ($20 000 (engine didn't rev harder so torque was significantly increased)). The Stage One had no drive line changes, but the Stage Two had drive line modifications. My vehicle weighs roughly the same as a full size pickup and the 400'ish hp I have is sufficient, I had little use for another 100 let alone 250hp. I couldn't see much difference in the actual supercharger setup other than a ratio change for the drive of the supercharger, so that extra $8 000 went into the drive line.