Merc1
Premium
BWM, Daimler, and Renault are temporarily closing factories in the face of falling demand, while others like Peugeot-Citroen sharply cut production
German and French car makers have temporarily closed their factories as demand falls due to the financial crisis. Meanwhile, additional German banks are seeking state aid, while Eastern European economies have also been badly hit, with the IMF bailing out Hungary and Ukraine.
German car giant BMW on Monday (27 October) stopped its production in Leipzig for four days, while Mercedes-producer Daimler announced a closure of up to five weeks in December, German media have reported.
French car company Renault also temporarily shut down all of its local factories and some of its foreign plants, such as Dacia Mioveni in Romania, while Peugeot-Citroen said it would slash production by 30 percent.
Christian Streiff, chief executive of Peugeot-Citroen told the Financial Times that he did not rule out shutting down factories entirely, including in France, where Peugeot operates six plants. The French car maker expects demand for cars in western Europe to plummet 17 percent by the end of the year.
The slump in European car production echoes similar problems in the US, where the three big car giants, Chrysler, Ford and General Motors, are seeking federal aid as they might face bankruptcy within a year, according to the Wall Street Journal.
Full Article: European Carmakers Slash Output - BusinessWeek
M
German and French car makers have temporarily closed their factories as demand falls due to the financial crisis. Meanwhile, additional German banks are seeking state aid, while Eastern European economies have also been badly hit, with the IMF bailing out Hungary and Ukraine.
German car giant BMW on Monday (27 October) stopped its production in Leipzig for four days, while Mercedes-producer Daimler announced a closure of up to five weeks in December, German media have reported.
French car company Renault also temporarily shut down all of its local factories and some of its foreign plants, such as Dacia Mioveni in Romania, while Peugeot-Citroen said it would slash production by 30 percent.
Christian Streiff, chief executive of Peugeot-Citroen told the Financial Times that he did not rule out shutting down factories entirely, including in France, where Peugeot operates six plants. The French car maker expects demand for cars in western Europe to plummet 17 percent by the end of the year.
The slump in European car production echoes similar problems in the US, where the three big car giants, Chrysler, Ford and General Motors, are seeking federal aid as they might face bankruptcy within a year, according to the Wall Street Journal.
Full Article: European Carmakers Slash Output - BusinessWeek
M
The most tricky situation is that the solutions suitable for US are completely opposite of the solutions suitable for the rest of the world. I compromise will be needed - but how good will it b, and will it really be good enough???
