Peugeot backs call for EU common policy

PSA Peugeot Citroën’s chief executive endorsed growing calls in the spring of 2012 for a common policy in Europe to solve the car industry’s overcapacity and competitiveness problems.

Philippe Varin echoed Sergio Marchionne, Fiat chief executive, on the 7 March 2012 in urging the European Commission to take a leading role in helping carmakers restructure in order to pre-empt beggar-thy-neighbour interventions by countries on behalf of individual car plants.

PSA, its new alliance partner General Motors, Ford Motor, and Fiat were all losing money in Europe because of falling demand and excess plant capacity, which had unleashed a brutal price war that was eroding their profit margins.

European Association of Automobile Manufacturers (ACEA): Homepage http://www.acea.be/

ACEA: Press Release, 28.2.12: Marchionne: 'EU must counter economic headwind with a strong industrial policy' http://www.acea.be/news/news_detail/marchionne_eu_must_counter_economic_headwind_with_a_strong_industrial_polic/

ESO: Background information: Unholy car alliance / GM poised to take 7% stake in Peugeot http://www.europeansources.info/record/unholy-car-alliance-gm-poised-to-take-7-stake-in-peugeot/

European Commission: DG Enterprise and Services: Industry sectors: Automotive industry http://ec.europa.eu/enterprise/sectors/automotive/index_en.htm

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