Economy

CHRISTIAAN HETZNER

BLOG: German automakers' bonus from weak euro may be hit by U.S. Fed shift

8:54 am U.S. ET | April 30, 2015

German carmakers and suppliers expect currency effects to add hundreds of millions to their bottom lines. But moves by the Federal Reserve to prop up the U.S. economy could strengthen the euro and hurt Daimler, VW and BMW....
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'RATIONAL EXUBERANCE'

Industry revels in good times but manages to avoid overdoing it

12:01 am U.S. ET | April 27, 2015

There are many signs suggesting the U.S. auto industry is on a positive, sustainable track, but perhaps the most reassuring sign is the kind of caution that dealers and manufacturers are showing amid the boom....
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Bitter rivals at home, GM and Ford taking different roads abroad

12:01 am U.S. ET | April 25, 2015

General Motors and Ford, Detroit's two venerable rivals, usually compete toe-to-toe in everything they do. But in Russia, they are headed in radically different directions....
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Dealership employees, payrolls top prerecession levels

12:01 am U.S. ET | April 20, 2015

U.S. dealerships added to their employee count for the fifth year in a row last year, causing the average store's payroll to rise sharply above its pre-recession levels. The average wage of $55,000 per employee ranks as one of the highest of any retail trade....
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Europe recovery continues in March

April 16, 2015 09:15 CET

European car sales increased 11 percent in March, the strongest growth in a year, as the region's improving economy fueled demand for vehicles made by automakers such as VW Group, Renault and Fiat Chrysler. Last month 1.65 million vehicles were sold in the region....
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EDITORIAL

All in all, rescue of automakers was a success

12:01 am U.S. ET | April 13, 2015

Certainly, the governmental bodies and their respective taxpayers lost some money on the rescue of General Motors and Chrysler. But it was far less than what the cost to them and the North American economy would have been if the automakers had been allowed to fail in 2009....
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Russian new-car sales fall 43% as economy slides

April 8, 2015 15:00 CET

Russian new-car sales fell 43 percent last month as a weak currency, falling oil prices and Western sanctions over Ukraine push the economy into recession....
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Volkswagen will cut production, jobs at Russian plant

March 23, 2015 11:55 CET

Volkswagen said it will reduce shifts and lay off at least 150 workers at its car plant in Kaluga, Russia, as demand shrinks. The company builds Audi, VW and Skoda cars in Kaluga....
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Russia boosts auto industry aid to $424 million

March 23, 2015 17:24 CET

Russia plans to spend more than 25 billion rubles ($424 million) in state funds to support its ailing auto industry, increasing the amount of aid it allocated last week....
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Automakers stay in Russia despite risk of high losses

March 19, 2015 12:39 CET

Automakers such as Volkswagen, Renault and Ford continue to compete for market share in Russia, even as GM scales back in the country. Companies risk losing as much as $2,000 on each car sale, according to a Russian dealership association....
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AUTOMOTIVE NEWS EUROPE E-MAGAZINE

Spain's Gestamp surged when main rivals slumped

March 18, 2015 06:01 CET

Spanish supplier Gestamp will continue along the growth path it started down when the auto industry was hit by the last financial crisis when it went on an expansion spree that boosted its operations in markets as far apart as Germany and China....
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Russian car sales fall 38% in February

March 10, 2015 15:30 CET

Russia's new-car sales fell 38 percent to 128,298 vehicle in February as consumers continued to avoid big purchases in an ailing economy plagued by a weakening ruble and Western sanctions over the conflict in Ukraine....
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Euro weakness, exports lift southern Europe car output

March 6, 2015 06:01 CET

While southern Europe is experiencing at best a patchy economic recovery, the outlook for the region's carmakers is a little less bumpy thanks to the weak euro, cheaper oil and labor reforms. Fiat, Ford and GM have boosted output in Spain and Italy....
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AvtoVAZ raises Lada prices again on weak ruble

March 4, 2015 15:21 CET

Russian automaker AvtoVAZ has raised the prices of its Lada cars for the second time this year because of the weaker ruble. The automaker said prices rose by 4.8 percent on average after an increase of around 9 percent in January this year....
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Union OKs 3% wage rise in Daimler, Porsche's heartland

Feb. 24, 2015 10:47 CET

Germany's biggest trade union, IG Metall, accepted a 3 percent wage increase for the country's southwest region, home to carmakers Daimler and Porsche. The union had called for a 5.5 percent increase. Deals agreed in the region traditionally serve as a template for agreements across Germany....
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PSA, Mitsubishi will halt production in Russia

Feb. 20, 2015 09:09 CET

PSA/Peugeot-Citroen and Mitsubishi will close their joint venture plant in Russia for two weeks as the country's worsening economic situation hits vehicle sales....
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JAMES B. TREECE

BLOG: North of U.S. border, mixed blessings from oil's skid

12:01 am U.S. ET | Feb. 14, 2015

In the U.S., the drop in oil prices is seen as a boost for most of the economy, with some localized pain in the oil patch. In Canada, the view is reversed....
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Daimler targets at least 10% sales growth in China this year

Feb. 10, 2015 13:27 CET

Daimler will boost local production of Mercedes vehicles in China and continue its dealer network expansion as it targets sales growth of at least 10 percent this year, the company's China chief, Hubertus Troska, said....
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Russian car sales may fall up to 35% in 2015, PwC says

Feb. 9, 2015 11:55 CET

Russian new-car sales are expected to decline by 25 percent to 35 percent this year as a weakening ruble and a sharply declining economy hit demand, accounting firm PricewaterhouseCoopers said. Sales fell 24 percent in January....
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Ford will roll out 6 new models in Russia despite market slump

Feb. 8, 2015 11:20 CET

Ford will roll out six new models in Russia this year despite the country's sagging economy and rising tensions over the conflict in Ukraine, CEO Mark Fields told a German business magazine....
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Ford's Europe unit hit by pension cost hike, Fields says

Feb. 5, 2015 12:51 CET

Ford CEO Mark Fields said rising pension costs and Russia's sales slump led the automaker to scrap its profit target for Europe. Ford says it expects to narrow its 2015 pretax loss in Europe, but the figure will exceed the $250 million loss it previously projected....
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Renault CEO Ghosn says one-third of Russian car market will vanish as recession deepens

Feb. 3, 2015 12:02 CET

Renault-Nissan CEO Carlos Ghosn said Russia's car market will probably shrink by another fifth this year, putting pressure on the alliance he leads after it teamed up with AvtoVAZ to strengthen its leading position in the country....
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Ford's Russia woes worsen as weak yen helps rivals

Feb. 2, 2015 11:23 CET

Ford's Chief Financial Officer Bob Shanks expects that Russia will continue to weigh on the automaker this year as the country's economy slumps and Japanese rivals aggressively cut prices helped by the weak yen....
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Europe on track for 5th month of rising vehicle output

Jan. 31, 2015 06:01 CET

European light vehicle production is estimated to rise 1 percent to 1.36 million vehicles in January, the fifth consecutive month of higher output. BMW, Fiat, Ford and VW were forecast to have the biggest production increases on strong demand for new models....
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BEST PRACTICES

Cardinale group makeover flexes digital muscle

2:00 pm U.S. ET | Jan. 24, 2015

In 2008, the recession was raging, and dealer Joe Cardinale decided to make some changes. He committed heavily to online sales and marketing, and parted ways with third-party lead providers, developed his own systems and software to manage his online presence. And he set stringent goals for his staff and held them accountable for results. It has worked wonders....
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