Auto giants like Volkswagen, Hyundai and Chrysler have moved away from their competitors on 26th April 2012 by presenting their decent profits and sales, which are mainly surged because of growth in the auto markets of Asia and America. On the other hand, the auto makers with reliance in European market are witnessing tough times because of stiff competition in the downward flowing market. The reasons conceived behind this downfall are unfavourable changes in government's budget, increasing unemployment and weak growth in wages, which together demotivates the buyers of all classes.
Impressive sales in North America helped Chrysler Group LLC to register its best profit in the quarter, after its bankruptcy in 2009. Chrysler Group is a U.S. based auto maker, wherein Fiat Spa has a majority stake. The auto sales of the company reported an increase of 33 per cent in the quarter, which was mainly obtained because of boost in its domestic U.S. Market. The company obtained market share on a first quarterly sales growth of 36 per cent. In addition, the quarterly profit of Chrysler surged to $473 million, under the review of $116 million in last year.
Sergio Marchionne, Chief Executive, Chrysler and Fiat (Italy), said, “Another positive quarter - built on sales gains that have surpassed the industry average - is affirmation that the Chrysler team is maintaining its focus.”
The sales of Fiat in European market are believed to witness a downfall as the debt crisis in continent had a bad effect on the market. Considering the quarterly profits of Hyundai Motor, it registered an increase of nearly a third, which is basically driven by development in the auto markets of China and United States.
Although the European auto market is on a low pace, Hyundai Motor performed off the beat, as its reasonably priced small cars that includes facelifted model of i30 grabbed the attention of cost-conscious buyers. Hyundai, the fifth largest auto maker in the world, is also linked with Kia Motors. Although the European market slipped by eight per cent during the first quarter, Hyundai managed to register an increase of double-digit percentage growth. In addition, the company was also gained from the free trade business transactions with United States and Europe.
Kang Sun-sik, Fund Manager, Woori Asset Management, which holds the stocks of Hyundai Motor, said, “There are few risks for Hyundai's strong growth momentum. Its overall sales remain strong globally thanks to improving brand and quality; the won is trading relatively cheap, and its key rivals, especially Japanese, continue to struggle.”
Following the league, the German car maker, Volkswagen, also reported a surprising operating profit of 10 per cent during the first quarter. The biggest auto maker of Europe remained parallel to its aim to expand the car sales under the review of last year’s figures of 8.3 million units by resting upon on the growing auto markets of Latin America, United States and Russia.
On 25th April 2012, PSA Peugeot Citroen, the French automotive manufacturer, predicted that the company will experience not so good times during the second quarter of the current fiscal. This forecast is based over considering the reduced demand in the company’s domestic and southern European markets. The overall sales in the first quarter of Renault also shrank by 8.6 per cent.
According to the data presented by industry association ACEA, the auto sales in European market fell for straight six months in a row during March, with a negative growth of 6.6 per cent. The growth in auto markets of Germany and Britain were not so impressive, through which the car companies can compensate their down-turn faced in Italy and France.
