Automotive News Europe - February 16, 2009 - 10

PAGE 10 · www.autonewseurope.com February 16, 2009 Opinion Should I stay or should I go, that is the question “ Yes, France cares about its auto industry President Nicolas Sarkozy’s plan to lend ¤6 billion to the nation’s two carmakers, PSA/Peugeot-Citroen and Renault, sent a clear message to the rest of Europe: France really cares about its auto industry. Other European governments immediately complained that Sarkozy was providing the kind of national aid that is forbidden under EU rules. But is that really relevant when the global auto industry is facing its worst crisis in decades? Aren’t these complaints just a way to paper over the inability of other governLuca Ciferri ments to act quickly and appropriately? After France’s move, Europe is no longer a level playing field. Berlin and Rome will probably move quickly to even things out again. Many European governments had called for a European Union intervention to help the auto industry. It’s in the works, but nothing has happened yet. And it is questionable whether Brussels is able to move as quickly and decisively as is required in the current situation. France did move quickly. Maybe the aspirin Sarkozy is prescribing is not strong enough to cure PSA and Renault. The US is providing $17.4 billion to Ford Motor and General Motors. It realizes that, when the patient in intensive care, strong medicine is needed. To Sarkozy, it was clear that waiting for things to get better was not an option. The point is simple: A sector that employs more than 12 million people in the EU is worthy of getting some help. Take into account that revenue from motor vehicle taxes is close to ¤400 billion a year in the core EU and the case for action becomes even stronger. Government assistance helps the entire automotive chain, from carmakers to parts and service suppliers to dealers. These are unprecedented times that require unprecedented, bold decisions. France took them, Europe hasn’t done anything yet. National measures may be a form of protectionism. But, in the current crisis, they are better than doing nothing. E-mail Luca Ciferri at lciferri@craincom.de. From the Editor With a little help from Paris, Berlin or Brussels Renault-Nissan CEO Carlos Ghosn are threatened if the industry doesn’t stated his case for government supget the financial help it needs. port of the auto industry in very sim“When we cannot get the money, ple terms last week. it’s very difficult to develop a lot of “Normal financial flows need to be technology for the future,” he said. re-established,” he said at a recepThe dearth of credit is affecting the tion hosted by the European aucar industry in many ways. It’s maktomakers association, ACEA. Ghosn ing it difficult and even impossible, holds the rotating presidency of the to continue to fund existing operaArjen Bongard lobbying group. tions. It’s threatening environmental “If we cannot get credit from the ambitions. And it’s killing car buyers’ banks, we have to get it from governments,” appetites for new vehicles. After all, 70 percent he continued. of all car purchases in Europe are financed. Welcome to a world where the state’s role is While Ghosn is appealing to the EU Comexpanding by the minute. Where the relation- mission to quickly play a bigger role in rescuship between private enterprise and governing Europe’s automakers, suppliers have startments and regulators is being redefined, pos- ed separate efforts to establish a rescue fund sibly for a very long time. specifically for them. They need the money Ghosn is very direct. Last week, he warned quickly. Without it, suppliers are at risk of gothat the EU’s ambitious environmental goals ing out of business within months. At an ACEA gathering last week, the focus was on whether help should come from national governments or from Brussels. France has already acted. Other national governments may follow soon. Can the EU Commission, which must find common ground between its 27 member nations, move quickly in a situation like this? At a press briefing, Ghosn didn’t answer that question. “We have to try,” he said. Other ACEA officials were more openly skeptical. National governments will always be able to act more quickly than the nominal government of a 27-country bloc. But Brussels should – and likely will – play a role, if only to make sure that economic nationalism doesn’t reverse decades of profitable international growth for many automakers and suppliers. E-mail Arjen Bongard at abongard@craincom.de. Automotive News Europe www.autonewseurope.com Jason Stein: Publisher and Editorial Director Tel: (49) 8153 907522 e-mail: jstein@craincom.de Arjen Bongard: Editor-in-Chief Tel: (49) 8153 907501 e-mail: abongard@craincom.de Keith E. Crain: Publishing Director Peter Brown: Group Publisher EDITORIAL GERMANY: Argelsrieder Feld 13 82234 Oberpfaffenhofen Tel: (49) 8153 907509 / Fax: (49) 8153 907510 e-mail: aneletters@craincom.de Paul McVeigh, Managing Editor Tel: (49) 8153 907503 e-mail: pmcveigh@craincom.de Douglas A. Bolduc, News Editor Tel: (49) 8153 907504 e-mail: dbolduc@craincom.de Mark Rechtin, News Editor Tel: (49) 8153 907528 e-mail: mrechtin@craincom.de Mark Appleton, Copy Editor Tel: (49) 8153 907502 e-mail: mappleton@craincom.de Georgia Chapman, Production Editor Tel: (49) 8153 907511 e-mail: gchapman@craincom.de Tom Freiwah, Layout Tel: (49) 8153 907512 e-mail: tfreiwah@craincom.de Anita Fograscher, Editorial Assistant Tel: (49) 8153 907509 e-mail: afograscher@craincom.de REPORTERS GERMANY: Bettina Mayer, Industry Reporter Tel: (49) 8153 907526; e-mail: bmayer@craincom.de John Revill, Staff Reporter Tel: (49) 8153 907527; e-mail: jrevill@craincom.de Hurtej Kaur, Staff Reporter Tel: (49) 8153 907525; e-mail: hkaur@craincom.de “ It may be coincidence, but a lot of senior executives seem to be leaving the industry these days. With global car markets rapidly heading for their nadir, the world’s most iconic car guy, General Motors Vice Chairman Bob Lutz, picked just this moment to announce his retirement. At PSA/Peugeot-Citroen, Gilles Michel, a key executive and the architect of the carmaker’s platform strategy, announced late last year that he was leaving for a different line of work. At BMW, renowned Chief Designer Chris Bangle is departing, apparently to pursue design interests outside the car business. Fiat’s Luca de Meo, the young marketing whiz who successfully introduced the Fiat 500, resigned in January. He may stay in the business, if his contract allows him to jump to Volkswagen. Big changes are also happening in the com- through various scenarios. They need their best munications departments of GM and Nissan. marketers to figure out what still sells, even in a At GM, Tony Cervone, unofficially the desig- down market. And they need their top PR peonated head of the group’s PR operations, is leav- ple to get the right message across. ing to join United Airlines. At Nissan, Simon Being an auto executive today isn’t much fun. Sproule resigned as PR chief to Executives spend a lot of join Microsoft. their time fine-tuning Companies need the It may not be a trend. But one their cost-saving stratebest in the business thing is clear: With mediumgies. They are holding one to stay and help. term prospects for the global meeting after another with auto industry depressed, there is employees worried about clearly less incentive for talented losing their jobs. executives to stick around. And in many automotive companies they are That’s unfortunate. In times like these, strug- laying off hundreds if not thousands of people. gling automakers and suppliers need the best in All this takes place against a backdrop of grim the business to stay and help them pull through. prospects for at least 2009. In 2008, 63 million Companies need their top strategists to work cars were sold worldwide. ACEA, Europe’s au- tomaker association, forecasts 2009 sales of 55 million. Renault CEO Carlos Ghosn, who also holds ACEA’s rotating presidency, says that, based on sales in the first five weeks of the year, the total may even end up at about 50 million this year. Weak sales ripple through to suppliers and their suppliers – and beyond. EU Industry Commissioner Günter Verheugen notes that chemicals, textiles and electronics companies are hurting too. “The closer they are to the auto industry, the more they are affected,” he says. Still, there will be a time of renewed growth and prosperity in 2010, 2011, or 2012. Only those executives that remain will benefit from it. “We will overcome this,” Verheugen said last week. “The industry is much better equipped to deal with this crisis than on previous occasions.” ITALY: Viale Cavaglià 8, 10029 Villastellone (TO) Luca Ciferri, Senior Writer Tel: (39) 01196-91970 Fax: (39) 01196-10113 e-mail: lciferri@craincom.de FRANCE: 28, rue des petites ecuries, 75010 Paris Lawrence J. Speer, Staff Reporter Tel: (33) 147-709420 / Fax: (33) 147-709421 e-mail: lspeer@craincom.de NETHERLANDS: Pimpernel 3, 8131 GH Wijhe Wim Oude Weernink, Reporter Tel/Fax: (31) 570-521093 e-mail: woweernink@craincom.de UNITED KINGDOM: Tony Lewin, Reporter Tel: (44) 1342 822479 Fax: (44) 1342 825462 e-mail: tony@tonylewin.com CZECH REPUBLIC: Lyle Frink, Correspondent Tel: (420) 606-486729 e-mail: lfrink@craincom.de IRELAND: Olive Keogh, Correspondent Tel: (353) 1-833-5473 Fax: (353) 1-8330467 e-mail: okeogh@iol.ie JAPAN: 1-7-1 Yura Kucho, Chiyoda-ku, Tokyo 100 Hans Greimel, Asia Editor, Automotive News Tel: (81) 423-60-8767 / Fax: (81) 423-60-8768 e-mail: hgreimel@crain.com CHINA: Yang Jian, Managing Editor, Automotive News China Tel: (86) 10-8453-0390 e-mail: yangjian@autonewschina.com

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Automotive News Europe - February 16, 2009

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