As the public report of Peugeot Citroen annual profit and loss accounts hit the news, the growing issue of the European economy and the current state it is in will be ever more present.
The French company Peugeot Citroen announced a decrease of over 5% in revenues as they begin to pin the loss on the volume of asset write downs they had to carry out throughout the 12 month period. The mass market manufacturer announced that the write down on assets totalled 4.7bn Euros.
The French Government looked to prevent the firms programme of cutting the costs by 1Billion in response to the complete lack of demand in Europe and the resulting decrease in sales. The French Government have invested a certain amount of money to prevent the closure of a production factory of which Peugeot Citroen planned to close in the cutting cost programme.
It is not just Peugeot Citroen who have suffered due to the deteriorated automotive sector in Europe and more specifically Southern Europe, as Italian firm Fiat have also announced a record loss for the company.
The US firm Ford who announced a profit for the year of 2012 also announced a 20 year low for the sale of cars in the European car market. In result of the 20 year low Ford have no other choice but to close a number of plants including the two plants in Southern England and a plant in Belgium.
Ford have based the current European woes on the amount of personal debt the residents of Europe face and the complete government austerity they face. The firm will not receive a profit in Europe for at least another two years according to Motor Trade Experts at the company.
It is thought that many manufacturers have predicted the European slump to continue into the next few years as they begin to cut production costs along with distribution costs. Manufacturers will have no choice but to match supply and demand in order to have any chance of achieving a profit or reducing any existing losses. They also insist that the need for the change is paramount to the firms being able to remain commercially viable and competitive in the coming years.
The UK car market remains reasonably strong having achieved the highest sales figures since the pre recession figures recorded in 2008. The UK have also climbed the ranking in the European sales market gaining ground on the top spot of Germany who also announced a decrease in sales.
Can the European Car Market Get Through to the Other Side?
The French company Peugeot Citroen announced a decrease of over 5% in revenues as they begin to pin the loss on the volume of asset write downs they had to carry out throughout the 12 month period. The mass market manufacturer announced that the write down on assets totalled 4.7bn Euros.
The French Government looked to prevent the firms programme of cutting the costs by 1Billion in response to the complete lack of demand in Europe and the resulting decrease in sales. The French Government have invested a certain amount of money to prevent the closure of a production factory of which Peugeot Citroen planned to close in the cutting cost programme.
It is not just Peugeot Citroen who have suffered due to the deteriorated automotive sector in Europe and more specifically Southern Europe, as Italian firm Fiat have also announced a record loss for the company.
The US firm Ford who announced a profit for the year of 2012 also announced a 20 year low for the sale of cars in the European car market. In result of the 20 year low Ford have no other choice but to close a number of plants including the two plants in Southern England and a plant in Belgium.
Ford have based the current European woes on the amount of personal debt the residents of Europe face and the complete government austerity they face. The firm will not receive a profit in Europe for at least another two years according to Motor Trade Experts at the company.
It is thought that many manufacturers have predicted the European slump to continue into the next few years as they begin to cut production costs along with distribution costs. Manufacturers will have no choice but to match supply and demand in order to have any chance of achieving a profit or reducing any existing losses. They also insist that the need for the change is paramount to the firms being able to remain commercially viable and competitive in the coming years.
The UK car market remains reasonably strong having achieved the highest sales figures since the pre recession figures recorded in 2008. The UK have also climbed the ranking in the European sales market gaining ground on the top spot of Germany who also announced a decrease in sales.
Can the European Car Market Get Through to the Other Side?
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