FCA, Peugeot Could Be Most Impacted by Flagging Greek Economy

Aaron Cole
by Aaron Cole

Automakers PSA (Peugeot and Citröen) and Fiat Chrysler Automobiles are most at risk if Greece’s economy fails and the country backs out of the Euro, according to a report by Automotive News.

Analysts say the two automakers have the largest share of southern European markets — including Italy, Spain and Portugal — where the economic impact of a Greek failure could hit the hardest.

Although the automakers have a large share of those markets, its a relatively small portion of their overall sales, the report states.

Analysts say that economic turmoil in Greece has yet to impact automakers, but many are taking a wait-and-see approach. The larger impact may be in neighboring economies, such as Germany, if those countries are expected to shoulder bailouts from any other failing economies.

“We recognize this as a potential catalyst that could cause European consumers to postpone their purchase of new cars, but we don’t take that as a base case scenario,” Edoardo Spina of Exane BNP Paribas told Automotive News. “The only risk stems from contagion, which will depend on how the European institutions and the media handle the next few days and weeks, but it’s a relatively small risk.”

The report says that PSA and FCA’s sales in the southern European markets (Spain, Portugal, Italy and Greece combines) comprises about 12 percent of their overall business. In comparison, Volkswagen’s sales there are only about 5 percent.

By many accounts, Greece’s economy is a mess. But considering the relatively low rate of new-vehicle purchases there — in May only 9,070 new vehicles were registered in Greece, compared to 256,385 in Germany, according to ACEA — most automakers could withstand a Greek collapse. The greatest damage would be collateral.

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  • Sector 5 Sector 5 on Jul 07, 2015

    If there's a NATO exit and Putin gets a toehold there will be more military expenditures in the region. Good for the US and Beijing's probably hoping your navy gets distracted from the south china seas. Car-wise I bet those poor sods at PSA wish they were in the US market right about now..

  • CincyDavid CincyDavid on Jul 09, 2015

    What about Cuba? I'm not being facetious...is there, and will there be an emerging market for new cars or even used cars there if the US and Cuba start cozying up to each other? Is there any money in that market to even buy cars?

    • Bumpy ii Bumpy ii on Jul 09, 2015

      Naah, Cuba is far too poor and lightly populated to make a dent in anyone's sales numbers.

  • YellowDuck Thank goodness neither one had their feet up on the dash....
  • Zerofoo I learned a long time ago to never buy a heavily modified vehicle. Far too many people lack the necessary mechanical engineering skills to know when they've screwed something up.
  • Zerofoo I was part of this industry during my college years. We built many, many cars for "street pharmacists" that sounded like this.Excessive car audio systems are kind of like 800 HP engines. Completely unnecessary, but a hell of a lot of fun.
  • DedBull In it to win it!
  • Wolfwagen IIRC I remember reading somewhere that the Porsche Cayenne was supposed to have a small gasoline-powered block heater. There was a loop in the cooling system that ran to the heater and when the temperature got to a certain point (0°C)the vehicle's control unit would activate the heater. I dont know if this was a concept or if it ever made it into production.