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http://www.leftlanenews.com/ceo-says...-concerns.html
11/27/2008, 5:00 PM
Industry/General
CEO says BMW in “biggest crisis in its history;” rivals have similar concerns
BMW, which has seen it sales double since 1999, is now in the “biggest crisis in its history,” CEO Norbert Reithofer told Germany’s Spiegel. Like all automakers, BMW’s sales have been hit hard by the financial crisis, but the company’s reliance on leasing for a large percentage puts it in an even more vulnerable position.
Reithofer isn’t alone in his sentiment. Daimler boss Dieter Zetsche admitted the situation could easily be the “worst crisis since World War II.” If that’s the case, expect more job cuts and production slowdowns at Mercedes and BMW.
Even Volkswagen, which has a much broader brand and model mix, is concerned about its future. “We have never before seen this kind of a crisis,” chairman Martin Winterkorn said. He said it would be impossible for his company to avoid “difficult cuts” and “painful” measures.
According to the New York Times, luxury cars from BMW and Mercedes are beginning to pile up at U.S. ports. But they aren’t the only ones. Literally thousands of Toyota and Nissan models have filled acres of land at the port in Long Beach, California. In fact, Mercedes, Toyota and Nissan have requested to lease additional space at a 160-acre lot to park their slow-selling cars.
Recently, Toyota Executive Vice President Mitsuo Kinoshita characterized the current situation as “an emergency, of a magnitude we have never seen before.”
So is any automaker immune to the economic collapse in America, Europe, and Asia? Simply put: no. After all, Mercedes, BMW, VW, and Toyota are usually thought of as the most stable automakers in the world. Their survival will depend entirely on their ability to quickly adapt to slowing sales. Without the same rigid union and legacy costs of the Detroit Three, we’re hopeful they’ll all pull through.
Industry/General
CEO says BMW in “biggest crisis in its history;” rivals have similar concerns
BMW, which has seen it sales double since 1999, is now in the “biggest crisis in its history,” CEO Norbert Reithofer told Germany’s Spiegel. Like all automakers, BMW’s sales have been hit hard by the financial crisis, but the company’s reliance on leasing for a large percentage puts it in an even more vulnerable position.
Reithofer isn’t alone in his sentiment. Daimler boss Dieter Zetsche admitted the situation could easily be the “worst crisis since World War II.” If that’s the case, expect more job cuts and production slowdowns at Mercedes and BMW.
Even Volkswagen, which has a much broader brand and model mix, is concerned about its future. “We have never before seen this kind of a crisis,” chairman Martin Winterkorn said. He said it would be impossible for his company to avoid “difficult cuts” and “painful” measures.
According to the New York Times, luxury cars from BMW and Mercedes are beginning to pile up at U.S. ports. But they aren’t the only ones. Literally thousands of Toyota and Nissan models have filled acres of land at the port in Long Beach, California. In fact, Mercedes, Toyota and Nissan have requested to lease additional space at a 160-acre lot to park their slow-selling cars.
Recently, Toyota Executive Vice President Mitsuo Kinoshita characterized the current situation as “an emergency, of a magnitude we have never seen before.”
So is any automaker immune to the economic collapse in America, Europe, and Asia? Simply put: no. After all, Mercedes, BMW, VW, and Toyota are usually thought of as the most stable automakers in the world. Their survival will depend entirely on their ability to quickly adapt to slowing sales. Without the same rigid union and legacy costs of the Detroit Three, we’re hopeful they’ll all pull through.
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