There?s a reason Renault is getting a lot of attention with this car. They?re the only one doing this so aggressively. If they are successful, there will be followers.
Peugeot had a bad year but their sales volumes improved. GM and Ford are operating at about their break-even market share.
Volkswagen said at the start of the year that it would be going up in market share and instead it has gone down. They appear to have lost the U.S. consumer in terms of design and functionality.
The second quarter is going to be a very difficult quarter for most auto companies. Earnings will be down for almost every auto manufacturer with the exception of possibly Porsche , truck companies and select parts and tyre companies.
Recalls are a cost of doing business. Even high-quality companies like Toyota set aside a little money for each car to cover that risk.
Toyota is at the top when it comes to real and perceived quality. One recall isn't a problem. It takes two points to draw a line and it that happens then you'll hear my tone change.
It is decisive, it is early and it gets a lot of uncertainty out.
If Western Europe were the only market for these carmakers, it would be a headwind, definitely. Companies will have to take an offensive and defensive approach - coming up with new models and attracting more up-market customers.
That's why Porsche bought Volkswagen. Working together on a common electronic architecture is a no-brainer.
The underlying Mercedes margin excluding one-off items and provision releases was significantly weaker than expected. That was an area where the market was prepared for upside surprise.