European carmakers need to close more factories and cut more jobs, executives at the Frankfurt car show said on Tuesday, warning any recovery in demand was likely to be long and slow as unemployment remained high and bank lending weak.
The bosses of automakers including Volkswagen (VOWG_p.DE: Quote), PSA Peugeot Citroen (PEUP.PA: Quote), and Ford Europe (F.N: Quote) said on the opening day of the biennial event that sales in Europe appeared to be stabilizing after five years of decline.
But recovery was not assured and likely to take years with the industry still needing to cut capacity to staunch losses at some manufacturers and ease price pressures on all, they added.
Peugeot, which incurred the wrath of French ministers and workers last year by scrapping a major factory and 8,000 jobs, said it would seek more plant cutbacks from unions.
Volkswagen (VW) chief Martin Winterkorn said the European industry could do with closing around 10 factories, although he stressed the German carmaker itself did not need to make cuts thanks to strong growth in the United States, China and Russia.
“Europe still has to be viewed with skepticism,” he said, adding sales across the region were down about 3-3.5 million since 2007.
“Basically, it’s 10 factories that could be closed … Thank God there are other areas we have growth,” he added.
Chosen excerpts by Job Market Monitor. Read the whole story at
via Europe’s carmakers warn of more cuts in weak recovery | Business | Reuters.
Europe / Auto Market contracted in March
European new car sales contracted in March for an 18th consecutive month, industry data showed Wednesday, led by declines in Germany and France. New vehicle registrations in the European Union fell 10.2 percent in March from a year earlier, the European Automobile Manufacturers’ Association reported from Brussels, to 1.3 million vehicles from about 1.5 million … Continue reading »
PSA-Peugeot-Citroen Offshoring / A 3rd China plant
PSA/Peugeot-Citroen opens a third assembly plant in China today, expanding in the world’s largest vehicle market even as a slump in European demand prompts it to cut jobs at home Continue reading »
Peugeot / 1,500 Jobs Added to Cuts
PSA Peugeot Citroen (UG), Europe’s second-largest carmaker, will eliminate an additional 1,500 jobs by 2014, deepening its workforce reduction as auto sales in the region plunge to a 17-year low. The cuts, which come on top of 8,000 announced in July, will be made by not replacing people who leave, Jonathan Goodman, a spokesman for … Continue reading »
Peugeot gets government rescue
PSA Peugeot Citroen (PEUP.PA) unveiled a government-backed refinancing deal for its lending arm as the struggling French automaker’s financial position deteriorated further, sending its stock to historic lows. Europe’s second-biggest automaker said it was close to an agreement with creditor banks on 11.5 billion euros ($14.9 billion) of refinancing and had won state guarantees on …Continue reading »
French minister says Peugeot should cut in Spain, not just France
France’s industry ministry is pressing the country’s leading carmaker to limit the impact of a domestic restructuring set to claim 8,000 jobs – by shifting part of the cuts burden to Spain. Arnaud Montebourg, industrial renewal minister, was expected to raise the issue in talks on Thursday with PSA Peugeot Citroen chief executive Philippe Varin … Continue reading »
Peugeot – The battle in Aulnay-sous-Bois
In July, after workers at French carmaker PSA Peugeot Citroen learned of company plans to close a plant in the suburbs of Paris, union leader Jean-Pierre Mercier went on the attack. Within hours he was calling for a “shock campaign” to force PSA Chief Executive Philippe Varin to keep the plant open. “We have the … Continue reading »
Peugeot Citroen – 8,000 jobs cut
French carmaker Peugeot Citroen has set out plans to cut 8,000 jobs and close an assembly plant outside Paris as losses mount. Peugeot said the Aulnay plant near Paris, which employs 3,000 workers, would stop production in 2014. Last week, Peugeot said its first-half sales had fallen 13% amid a “profound crisis” in its eurozone … Continue reading »
France – Industry Bleeds Jobs
Renault SA (RNO) says if President Francois Hollande wants more cars built in France, he needs to tackle the country’s high labor costs and rigid work rules. France’s second-largest carmaker, which is based near Paris and 15 percent owned by the government, built fewer than a quarter of the 2.83 million cars that rolled off … Continue reading »
Poland / Fiat announces 1,500 layoffs
Fiat announced 1,500 layoffs at its Polish operations to reduce production, as demand is plummeting in Europe. Fiat forecasts losses of 700 million euros ($903 million) in Europe this year. The cuts will come at the Tychy plant as well as from sales staff in the country, Fiat said in a statement on Friday. Fiat … Continue reading »
Fiat / To slash 1,500 jobs in Poland
Italian carmaker Fiat said Friday it would slash 1,500 jobs in a plant in Poland due to falling demand for small cars in the European market. Output in Tychy, southern Poland, was projected to fall below 300,000 vehicles next year, down from 600,000 in 2009, Fiat said in a statement. The company summoned Polish unions … Continue reading »
Volvo / 1,000 new layoffs for 2013
Volvo Car Corporation announced on Wednesday it would cut about 1,000 jobs and slash $237 million in costs by the end of this year. The Swedish automaker wants to reverse recent losses caused by weak sales in Europe. Volvo CEO Hakan Samuelsson told Swedish public television SVT that 1,000 consultants and white-collar workers would need … Continue reading »
Volvo / New job cuts to come
Volvo AB, the world’s second-largest truckmaker, said fourth-quarter profit dropped 84 percent because of the cost of cutting jobs and reorganizing production in response to shrinking economies in Europe and the U.S. Earnings before interest and taxes fell to 1.12 billion kronor ($177 million) from 6.96 billion kronor a year earlier, Gothenburg, Sweden-based Volvo said … Continue reading»
Sweden – Volvo Cars to Halt Production
Volvo Car Corp. Monday said it would halt production for a week from Oct. 29 at its plant in Torslanda, Sweden, in the latest response to shrinking demand from an auto maker. “The recession in Europe is deepening and that impacts customers’ willingness to buy new cars,” said Volvo spokesman Per-Ake Froberg. “Therefore we have … Continue reading »
Volvo Cars cuts up to 400 consultant jobs
Volvo Cars announced on Friday it would cut up to 400 temporary consultant positions and has reportedly issued an ultimatum to its Swedish suppliers to slash prices by a fifth before 2015. The loss-making carmaker, which was acquired by Chinese firm … Volvo Cars cuts up to 400 consultant jobs http://finance.ninemsn.com.au/newsbusiness/aap/8533249/volvo-cars-cuts-up-to-400-consultant-jobs
Volkswagen – 1 billion euros investment in Russia
Germany’s Volkswagen (VOWG_p.DE) said on Wednesday it is aiming to invest a total of one billion euros ($1.25 billion) in Russia by 2018, initially expanding by building an engine plant in Kaluga. Volkswagen will invest 250 million euros in the construction of the plant in Kaluga, a town some 190 km (118 miles) south-east of … Continue reading »
Talent War / Porsche to Cut Working Hours but Maintain Pay
Sportscar maker Porsche, a unit of Volkswagen AG (IW 1000/10), on Thursday said it will gradually trim working hours without any cuts in pay, in an effort to attract highly skilled workers. “Porsche is looking to improve competitiveness and attractiveness as an employer even further,” the automaker said in a statement. Porsche’s executive board and … Continue reading »
I was very pleased to uncover this great site.
I want to to thank you for your time for this particularly fantastic
read!! I definitely appreciated every little bit of it and I have you bookmarked to look at new stuff in your site.