After enjoying several years of growth, increased consumer awareness, and heightening critical acclaim, French automakers appear poised for a tough 2006. According to online newspaper, the companies are fighting eroding sales in Europe and grappling with diminished product margins which appear likely to affect their bottom line this year.

Executive-of-the-Moment Carlos Ghosn fears that Renault has been hobbled by an over-dependence on Megane sales in France-- what he calls the 'Fiat Syndrome: extreme dependence on one segment and one country.' The Megane, which has long been a top seller, has begun to falter, losing 30 percent in November. Peugeot's 1007 has been enduring soft sales.

Other contributing factors to a potentially lackluster 2006 include a home market whose growth isn't as robust as in years past, and an increase in the number of new models among French automakers, which can erode profitability even while boosting sales numbers.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • From Our Partners

    You May Like
    Links by Zergnet
    Share This Photo X