European debt crisis car companies seeking Chinese style breakout

Under the European debt crisis, the European automobile market has shrunk rapidly. In contrast, European car companies have found a glimmer of warmth in China. As a result, many European companies have sought to break through the Chinese market.

On October 24th in Paris, France, PSA Peugeot-Citroen CEO Philip Walling attended the press conference and said that the French government will provide ECU with a €7 billion financing guarantee for the crisis.

If we look at the auto industry alone, China is the second pole in the world economy and it seems to be a lot more reliable.

Since September, the European economy has continued to decline. This has directly caused Volkswagen Group, Europe’s largest automaker, to lose 20% in operating profit in the third quarter, while the second-largest maker of trademarks has not only shut down factories but also requested financial assistance from the government.

The September financial report was revealed, or is it that these car dealers are in China. Among them, Volkswagen achieved a profit of 2.806 billion euros in the Chinese market, a year-on-year increase of nearly half. The PSA Peugeot Citroën created a record high in sales in China in September this year.

Obviously, European car dealers feel the spring warmth in the Chinese auto market, and the Chinese market with an annual sales volume of nearly 20 million has gradually become the main battlefield for European car manufacturers to wrestle around the world.

European debt crisis: nest without eggs will survive <br> <br> October this year, the German economic sentiment index fell to 101.4 points in September of 100 points, the sixth consecutive monthly decline, to the lowest since February 2010 . This is just a microcosm of the German economy's apparent weakness under the growing influence of the European debt crisis.

A few days ago, Daimler CEO Zeche announced the group's cost-cutting plan and warned that its profit in 2012 will decline sharply year-on-year. Bloomberg predicts that the decline will be 13%, about 1.83 billion euros. At the same time, BMW Global Sales Director Ian Rotbertson also stated that the challenges of Europe will further escalate, and the road ahead will be even more difficult to go. It may take many years for the market to rejuvenate. The financial data of the third quarter released by the Volkswagen Group seems to have more directly explained the problem: As a result of the downturn in the European auto market and the high cost of technology development, Volkswagen’s third-quarter operating profit has experienced a rare decline in recent years, with a year-on-year decline of nearly two. As a result, the cumulative operating profit for the first three quarters also declined slightly by 1.6%. (Source: Southern Metropolis Daily South Nets In fact, since September, the unemployment rate in Germany has risen. The government has lowered its 2013 economic growth target and also cut some of its welfare expenditures. Before that, industry economic schools had long Issued a warning that if Germany stands idly by while suffering in other countries in the euro zone, then the country’s export-led economy is likely to stagnate at the end of 2012 because the euro zone’s allies are the country’s largest export trade. Partners, no eggs under the nest.

China market: warm spring continues <br> <br> compared to other manufacturing industries, for the German car car dealer, the EU was "fortunately" is not their only outlet and most important "partner ".

In fact, in September this year, with the collective decline in the number of Japanese car dealers, the share of European car dealers increased by 32%.

Despite the declining profits in the global market, in China, Volkswagen’s profit for the first three quarters was 2.806 billion euros, which was a year-on-year increase of 47.1% from last year’s 1.908 billion euros, a nearly half increase.

The more obvious example is reflected in Citroën, the second-largest automaker in Europe. Last week, on the French mainland, PSA Peugeot Citroen was “responsible” to the government and the French government would “conditionally” bear the company’s new bond of approximately 7 billion euros (about US$ 9 billion).

In contrast, in China, PSA Peugeot Citroen recorded record sales in China in September this year, of which, sales of Dongfeng Peugeot Citroen and PSA Peugeot Citroën in China were 42,728 units, an increase of 9.2% year-on-year, an increase of 32% from the previous month in China. Sales reached a record high. Since the first half of this year, Dongfeng Peugeot sales have increased by 28.6% year-on-year, and this French car manufacturer has already been thinking of “properly increasing” its annual sales target.

In fact, the prediction put forward by the Daimler Group several years ago that the “China, the United States, and Germany” automobile market will be evenly divided until 2015 has quietly changed with the subprime crisis in the United States and the EU’s debt crisis in Europe.