Automakers PSA (Peugeot and Citröen) and Fiat Chrysler Automobiles are most at risk if Greece’s economy fails and the country backs out of the Euro, according to a report by Automotive News.
Analysts say the two automakers have the largest share of southern European markets — including Italy, Spain and Portugal — where the economic impact of a Greek failure could hit the hardest.
Although the automakers have a large share of those markets, its a relatively small portion of their overall sales, the report states.
Analysts say that economic turmoil in Greece has yet to impact automakers, but many are taking a wait-and-see approach. The larger impact may be in neighboring economies, such as Germany, if those countries are expected to shoulder bailouts from any other failing economies.
“We recognize this as a potential catalyst that could cause European consumers to postpone their purchase of new cars, but we don’t take that as a base case scenario,” Edoardo Spina of Exane BNP Paribas told Automotive News. “The only risk stems from contagion, which will depend on how the European institutions and the media handle the next few days and weeks, but it’s a relatively small risk.”
The report says that PSA and FCA’s sales in the southern European markets (Spain, Portugal, Italy and Greece combines) comprises about 12 percent of their overall business. In comparison, Volkswagen’s sales there are only about 5 percent.
By many accounts, Greece’s economy is a mess. But considering the relatively low rate of new-vehicle purchases there — in May only 9,070 new vehicles were registered in Greece, compared to 256,385 in Germany, according to ACEA — most automakers could withstand a Greek collapse. The greatest damage would be collateral.
The post FCA, Peugeot Could Be Most Impacted by Flagging Greek Economy appeared first on The Truth About Cars.
Best Deals today in www.freepromotoday.com