According to a report in the New York Times published yesterday, Marchionne suggested VW’s pricing strategy was creating a “bloodbath.” The newspaper said that Marchionne, who is also president of the ACEA group, and other auto executives accuse the German carmaker of exploiting the debt crisis to expand its market share.
The comments “show once again that Marchionne is not qualified to be ACEA president,” VW’s chief spokesman, Stephan Gruehsem, said in an e-mailed statement, calling for his resignation from the post. VW is also considering leaving the association itself, he said.
The spat highlights the strained relationships in the European auto industry, itself a microcosm of the region’s debt crisis. Wolfsburg, Germany-based VW yesterday reported record first-half profit, while Fiat of Italy and PSA Peugeot Citroen of France contend with widening losses in Europe.
Richard Gadeselli, a spokesman for Fiat, didn’t immediately respond to messages left outside of normal business hours.
Capacity Conflict
Marchionne has needled Volkswagen before, by suggesting German carmakers should do their share in closing excess capacity in Europe. VW, Bayerische Motoren Werke AG (BMW) and Daimler AG (DAI) resisted. Their factories are running at more than 90 percent capacity, versus rates of 60 to 75 percent for other carmakers in the region, according to UBS analyst Philippe Houchois.
European carmakers are extending discounts to attract dwindling buyers, with ACEA predicting sales will fall to a 17- year low this year. Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg- Essen, cited price cuts of about 24 percent on VW’s Golf model in Germany.
The European auto market faces an “elevated risk,” as competition has increased “significantly,” Christian Klingler, VW’s sales chief, said on a conference call yesterday. Auto pricing in Europe is “tense” and “pressure” will continue in the coming months, he said.
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