By on July 7, 2015


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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20 Comments on “FCA, Peugeot Could Be Most Impacted by Flagging Greek Economy...”

  • avatar

    Only by the power of almight HELLCAT can we break free of the chains of looming austerity.

    • 0 avatar

      I’d like Hellcat to focus on power, and SRT to focus on handling. 700 hp is nice and all, but I like to go around curves and pass the occasional gas station, no matter how low the price might be – somewhere in the 300 to 400 hp range but lightweight and lean would do just fine (and don’t tell me the current models meet the bill).

    • 0 avatar

      Have you been to Greece? I doubt a Dodge Challenger could even fit width-wise on one of their typical roads.

  • avatar

    You know the Greek financial fiasco isn’t really a car related story.

    Nor is the BP settlement editorial.

    And, just in case you’re thinking about it, nor are the Bill Cosby rape allegations or the Iranian nuclear talks.

    • 0 avatar

      If Aaron were writing about how the Greek situation affected the market for Samsung TVs, I’d agree with you. I don’t see what’s wrong with mentioning that it has an impact on 2 carmakers, one of which is directly connected to the US.

    • 0 avatar

      I have no doubt that Europe’s economic woes are toward the top of the list of what keeps Sergio Marchionne awake at night. Southern Europe’s problems are FCA’s problems.

  • avatar

    I like slow news days. Dubious cobbling of articles like this and the Honda/FCA one are what peace looks like.

  • avatar

    Greece is a tiny market, and unlikely to have much of an impact.

    The implosion of China’s stock markets in the face of desperate but entirely ineffective attempts to stop the bleeding – so far, 26% of equities listed on mainland exchanges have had trading suspended – is a much, much, much bigger story, and likely to have a much greater impact. How many of the emerging Chinese middle class just watched the money they were going to spend on a new long-wheelbase Buick go up in smoke?

    • 0 avatar

      In the worst case scenario, a Grexit could torpedo the Eurozone and cause a depression in southern Europe and a serious recession elsewhere in Europe. Don’t kid yourself.

      • 0 avatar

        China’s markets shedding over three trillion dollars in market cap over the past few days does seem more likely to have a larger and more immediate impact on the US. All this emphasis on Greece’s Cloward Piven moment is just about giving cover to progressive politicians that want an excuse to transfer more debt from their banker backers to their victims…er…taxpayers.

      • 0 avatar

        In a worst case scenario, yes, but the worst case is far from being a likely case. The EU has had 5 years to insulate itself against Grexit risk. In particular, the other southern tier countries (Portugal, Spain, Italy) have done the painful restructuring work necessary to put their economies on a more solid base, and Greece is, after all), a pretty small player.

        The impact of a Grexit, if it comes to that, will be profound in Greece. Elsewhere, much less so.

        • 0 avatar

          “The impact of a Grexit, if it comes to that, will be profound in Greece. Elsewhere, much less so”

          The concern isn’t Greece, which is to Europe what a second-tier city is to the US, it’s that it could see an exit for Spain (where Podemos is watching Syriza’s actions and consequences quite closely) or Italy next, and call the whole enterprise into question. It would certainly hurt Germany, who has benefited quite handsomely thusfar.

          The European community, frankly, needs either be fiscal and monetary union, at the very least adjust the trade and fiscal imbalances that grossly favour the core (Germany) at the expense of the periphery.

        • 0 avatar

          “In particular, the other southern tier countries (Portugal, Spain, Italy) have done the painful restructuring work necessary to put their economies on a more solid base”

          No, they really haven’t.

          They’ve made it worse (Spain’s unemployment problems are almost as bad as Greece’s and Italy isn’t far behind) by badly cramping the ability of those countries recover from recession. Greece was just more vulnerable to austerity-induced collapse because of it’s size.

  • avatar
    heavy handle

    I think the German makers could take a bigger hit. The Euro’s been kept artificially low by the Greek and (previously) Spanish and Portuguese problems. Medium-term, you could see a stronger Euro if the weaker economies move away from a common currency.

  • avatar

    Greece is a country far far away to worry about. How about Puerto Rico? Does it affect FCA or PSA.

  • avatar

    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..

  • avatar

    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?

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