Tuesday, 25 July 2017

The European Car Crisis: VW / Fiat 2012

Not to labour the point for too long, the final installment in this series compares VW and Fiat in Western Europe. Fiat was the darling of the region many moons ago, with models such as the 125, 127 and 128. Ah, those were the days. VW has been more consistent, in fact consolidating its position of late. Going back as far as I have data, VW was third in 1990 (10.4% share) and Fiat fourth (9.9%) in Europe West.
Things are different today, as the stats below from Europe's four largest markets reveals, as well as Europe total sales. This is for Jan-Jun '12:
Germany
1 VW 21.9%
11 Fiat 2.5%

UK
3 VW 9.1%
15 Fiat 2.5%
Italy
1 Fiat 20.6%
2 VW 8.1%

France
4 VW 7.3%
7 Fiat 3.5%

Europe West
1 VW 12.9%
9 Fiat 4.8%

Fiat needs to shut a factory or two if it hopes to be profitable in the region. VW on the other hand has no such problem. Fiat cars are not as good as they used to be, hence it's need to downsize. VW cars are solid, but the brand's success surprises me. VW cars are not as good as Euopeans think they are. Perhaps they benefit from some fairly ordinary competition.

VW is one of the few brands Euro brands not struggling with the crisis. Fiat certainly is. However, if things continue as they are, VW will start to feel it too.

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