It has not been a good week for the motor industry. Unless of course you are VW or PSA. Both of them recorded good profits this week, and show that presumably they are on the right side of the curve of innovation, cost-cutting and producing the right product at the right time.
Which contrasts with some other manufacturers. Read these headlines in the last couple of days “Ford profits drop sharply on global restructuring costs”, “Aston Martin shares tumble after slashing forecasts”, “Nissan to cut 12,500 thousand jobs as it seeks to revive business”, “Jaguar Land Rover swings back into red as sales fall”, “Renault hit by sluggishness in France and emerging markets”, “Daimler posts €1.6bn quarterly loss as auto industry slows”. Need I say more, need I explain more?
So why the difference? Well VW’s profit rise is put down to really strong performance in its Porsche division and sales of their larger SUVs – these have gone through the roof. So their product development is in line with customer expectations. And PSA has clearly benefited from their takeover of Opel, something that many in the industry were sceptical about. With new models and tighter cost controls they are clearly doing something right as the profits they announced this week are their highest ever reported. So in an increasingly crowded automotive marketplace there are some winners. But sadly, plenty more losers.
Have a great weekend, the Test Match may be over but there is still some amazing action to see in the Tour de France.
The computer is a moron.
Peter Drucker (1909 – 2005)
Politics is the art of looking for trouble, finding it whether it exists or not, diagnosing it incorrectly, and applying the wrong remedy.
In all affairs it’s a healthy thing now and then to hang a question mark on the things you have long taken for granted.
Bertrand Russell (1872 – 1970)
If all the world’s a stage, I want to operate the trap door.
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