Watch: The European car industry to address the financial crisis
Financial crisis spreading, the spread to the U.S. auto industry, the United States Detroit's Big Three car companies are waiting for government assistance, the European car industry will break the cocoon reborn, waiting for the U.S. auto industry, government assistance, that the European car industry will how to deal with the financial crisis?
Fiat The well-known car companies cut jobs and reduce inventory to deal with financial crisis
Financial crisis facing the European automotive industry a severe test, financial crisis credit crunch, auto sales in France more than two-thirds to rely on loans, credit crunch led directly to the car market shrinking. This year in October, the French domestic car sales dropped 7.3% year on year. Two French carmakers Renault and PSA Peugeot Citroen have laid off and a substantial cut, hopes to save money and reduce stocks respond to market contraction. Renault Group announced that it would lay off 4,900 people in the country, the fourth quarter to drop by 25%; PSA Peugeot Citroen Group announced plans to lay off 3550 people in the country, the fourth-quarter production will be reduced by 30%. Volkswagen factory in Germany will be on December 18 to January 11 next year, discontinued, in order to avoid inventory backlog, the financial services company owned by the public on Dec. 9 had the German government's bank rescue plan to apply for a loan guarantee. The Daimler plans starting from December 11 shutdown, until January 12 next year.
Injured more important auto parts industry, many firms orders plunged, sales plummeted. With a French auto parts supplier, for example, its turnover from February of 1.2 million euros in October dropped to less than 50 million euros; and within a year, this enterprise retrenched employees to 40%.
Difficult to find independent support Cooperation Partner
Fiat has issued a distress call this week, The Italian auto giant can not continue to remain independent, the company needed a partner. Fiat needs partners are BMW, the two sides are cooperating in negotiations. However, the current BMW said the company will not be before the end of 2008 and the Italian Fiat company's potential co-operation decision. BMW spokesman said the two sides of the negotiation situation is complicated, and will continue until 2009. For the government to provide financial support
automotive industry The European Union and associated banks in December to discuss whether to approve 40 billion euros of soft loan scheme to support the European car manufacturers to increase investment in environmentally friendly cars and investment in new energy vehicles. At the end of November, the European Commission also proposed for the troubled European car industry at least 5 billion euros bailout money. At present the French Renault and Peugeot to the financial subsidiary of lending one billion euros; Germany reduced the car tax, costing 1.4 billion euros. A spokesman for British Prime Minister said yesterday that the Government hopes to cooperate with the national car manufacturers.
Auto industry restructuring to address the financial crisis
Financial crisis, the auto industry, some industry adjustment, improve the trade structure, enhance the value of their own industry, which has undoubtedly brought a number of new business development space, such as the restructuring of the automotive industry, big fish eat small fish, which is a major industry regulations, while improving the competitiveness of the industry. Taking advantage of the financial crisis in the automotive industry sector restructuring is also an opportunity for industry development.
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