french auto sector facing \storm\ in 2012
Last Updated : GMT 01:41:00
Arab Today, arab today
Arab Today, arab today

French auto sector facing \'storm\' in 2012

Arab Today, arab today

Arab Today, arab today French auto sector facing \'storm\' in 2012

Paris - AFP

It is one of the key engines of the French economy and a historically vital industry, but France's auto sector is heading into 2012 amid dire forecasts for its future and warnings of major job losses. Accounting -- directly or indirectly -- for a quarter of the national workforce, vehicle manufacturing is one of the gems of French industry and the country is home to two global auto giants, PSA Peugeot Citroen and Renault. But industry chiefs and analysts are warning that the economic slowdown expected in Europe next year will hit France's auto industry, which is also suffering from Asian competition, especially hard. "We are going to be facing a storm (in 2012). The European and French markets will be directed downward," Renault Chief Operating Officer Carlos Tavares said in an interview with Le Parisien daily this week.Earlier this month PSA chief Philippe Varin said his company was facing a significant loss in the second half of 2011 and that he expected "negative growth" on the European car market next year. Analysts are warning that European car sales are sure to plunge as the full impact of the eurozone debt crisis hits home. "The market is catching up to economic reality," said Ludovic Subran, chief economist at credit insurer Euler Hermes. "With the end of recovery plans and the atmosphere of austerity in most European countries, the automobile sector cannot but continue its slow agony and (sales) should decrease again by three to five percent next year," Subran said. Though he would not provide details, Renault's Tavares said the grim forecast meant the group would probably be looking to cut costs early next year. "In the first half of 2012, we will likely be required to take cost-saving measures," he said. Last week the group announced it was withdrawing five models from the British market and slashing the number of authorised dealerships by a third after sales there plunged from 113,000 vehicles in 2010 to 87,000 this year. PSA, for its part, has already announced major French layoffs, including 1,900 job cuts within the company itself and cost-saving measures that will see about 2,300 jobs lost at external partners. In total the company is looking to make 800 million euros ($1 billion) in savings next year. In a report on the European auto sector this month, analysis firm PricewaterhouseCoopers-Autofacts was especially pessimistic about France. Two measures that have helped artificially boost car sales in recent years -- a 1,000 euro sales incentive for buyers of new cars who scrap older ones and a tax bonus available for buying low-polluting cars -- have come to an end. "With two support mechanisms slated for removal (scrappage carryover and reduced bonuses for low-emitting cars), along with steep increases in company car taxation, France represents a major volume risk, with a possible eight percent decrease (in sales) to little more than two million units," PwC-Autofacts said in the report.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french auto sector facing \storm\ in 2012 french auto sector facing \storm\ in 2012

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

french auto sector facing \storm\ in 2012 french auto sector facing \storm\ in 2012

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday