Chart Of The Day: The Unprecedented Implosion Of European Car Sales

Tyler Durden's picture




 

The graphic below, which presents an unvarnished picture of Europe's true economic state, needs no explanation:

Source: FT

In the context of the above, no explanation is also needed that quietly, and without much fanfare, French car-maker, Peugeot, and Europe's second largest after VW, was recently GMed, and received a government bailout.

Carmaker Peugeot gets $9.1B government bailout

 

The French government has agreed to underwrite up to €7 billion ($9.1 billion) of bonds issued by Banque PSA Finance SA, the financing unit of carmaker PSA Peugeot Citroen SA, allowing the French automaker to offer low-cost credit to its dealerships and clients amid a slump in sales.

 

Peugeot announced the deal on Wednesday, Oct. 24. It also said it had agreed the basis of a €10.5 billion restructuring of existing loans and asked banks to provide a further €1 billion of new debt to its finance unit.

 

The deals effectively immunize Peugeot's credit unit against recent downgrades of its parent's debt rating. That had threatened to drive the lending arm's rating to junk and would have forced it to increase the rates on loans to its own dealerships and to clients, hurting car sales that are already suffering from a Europe-wide slump.

 

The government, in return for the debt guarantees and its role in cajoling the banks to extend new loans to Peugeot, has demanded that Peugeot pay no dividends, undertake no share buybacks and issue no new share options to its managing board until the debt guarantees expire. Family-controlled Peugeot also agreed to add a workers' representative and a government appointee to its board.

 

"The government has no intention of making gifts without demanding anything in return," French Prime Minister Jean-Marc Ayrault told France Inter radio on Wednesday. "We ask the PSA group not to pay dividends, stock options or buybacks - that would be scandalous - and to concentrate on turning the company around."

Expect many more such bailouts as a relentlessly socialist and protectionist Europe does all it can to preserve much needed votes jobs in the critical, if greatly uncompetitive, carmaking sector, and all other sector, soon to follow.

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Tue, 12/04/2012 - 09:28 | 3032028 schatzi
schatzi's picture

I blame lack of parking space at European dealerships. Channelstuffing for the win!

Tue, 12/04/2012 - 09:34 | 3032043 GetZeeGold
GetZeeGold's picture

 

 

Expect quick action.......almost everyone in Congress drives a BMW or a Merc.

 

Hell.....word is even the UAW has a fleet of them. They've been expanding.

Tue, 12/04/2012 - 09:49 | 3032098 TruthInSunshine
TruthInSunshine's picture

In the meantime, the sale & heavily subsidized leasing (another form of a "sale") of cheap & small vehicles (many of which are made by still massively subsized and even outright owned in significant portion by Timmay-Sold-To-You-Mr./Mrs. Taxpayer) in the U.S. to warm bodies with a pulse and a FICO in the 500 range is continuing to rise, allowing for unicorn sharting skittles Main Stream Media headlines to pronounce that all is well & good in the U.S. hood, despite what's happening on the other side of the pond.

Tue, 12/04/2012 - 09:51 | 3032106 GetZeeGold
GetZeeGold's picture

 

 

It's an exhilarating feeling flying by the broken down Merc on the side of the road in my Kia.

Tue, 12/04/2012 - 09:58 | 3032129 francis_sawyer
francis_sawyer's picture

Fahrvergnügen bitchez!

Tue, 12/04/2012 - 10:05 | 3032165 Oh regional Indian
Oh regional Indian's picture

Peugeot 309, the best Front Wheel Drive car in the world, ever, period. Just for that, they deserve a bailout. (Disclaimer: I own one :-)  )

And as usual, the unreported part, since it might get the proles angry is that all these guys are ramping up their operations in the "3rd" world like crazy.

Huge core investment in manufacturing locally, sourcing locally, massive tax write-downs by a bought and paid for Indian government for CKD kits being assembled here... on and on.

GM is doing very well here, so is VW. MBZ even sold over a 100 Maybachs here in the past few years.

Tectonic shift in where the Connedsumers are.

That is the story behind this story.

the EU's commie-i-zation of the EU is marching on, clearly.

ori

Tue, 12/04/2012 - 10:14 | 3032219 TruthInSunshine
TruthInSunshine's picture

All I can say is that I give thanks that I don't live in that old school bastion of socialism that is Europe, where the government intrudes endlessy into the affairs of private enterpise and tramples on the markets on a daily basis, thus distorting all market functions and introducing massive inefficiencies:

Fannie, Freddie Halts Foreclosures For the Holidays

Happy Holidays, bitchez!

Tue, 12/04/2012 - 10:20 | 3032241 Urban Redneck
Urban Redneck's picture

Happy holidays to those in that new school bastion of socialism...

Tue, 12/04/2012 - 11:51 | 3032500 smiler03
smiler03's picture

Admittedly from August 2012 but the UK is doing well. UK car industry enjoys 22% rise in production:

http://www.guardian.co.uk/business/2012/aug/16/uk-car-industry-rise-prod...

Nissan’s plant in Sunderland produced more cars in 2011 than any UK car factory has ever produced in a year before. (480,000 cars):

http://www.telegraph.co.uk/finance/newsbysector/transport/8992045/Nissan...

Sales boost for Jaguar Land Rover, sales up 34.4%

http://www.bbc.co.uk/news/business-19193124

 

 

Tue, 12/04/2012 - 10:06 | 3032177 Freddie
Freddie's picture

I was driving last night and saw a newish dirty 3 series BMW with an Obama sticker.  One headlight was out and an Obama type woman talking on a iPhone.  What a joke.

Tue, 12/04/2012 - 11:31 | 3032457 francis_sawyer
francis_sawyer's picture

It was Trav who put her headlight out with a crowbar...

Tue, 12/04/2012 - 12:01 | 3032544 TruthInSunshine
TruthInSunshine's picture

Automatic +1 for the "JFC People!!!" Trav reference.

Tue, 12/04/2012 - 09:29 | 3032032 resurger
resurger's picture

 Seriously WTF!!!!!!!

Tue, 12/04/2012 - 09:33 | 3032045 CPL
CPL's picture

I know...Renault gets a bailout.  Like bailing out the maker of the yugo.  Nice engines but they are fucking U G L Y cars.

Tue, 12/04/2012 - 09:54 | 3032118 Cypher_73
Cypher_73's picture

Peugeot, not Renault. You are car maker fail.

Tue, 12/04/2012 - 11:16 | 3032413 Ratscam
Ratscam's picture

the iran embargo cut big time into the P&L of Peugeot. most foreign brand in iran. When will the people overthrough their government?

Tue, 12/04/2012 - 11:18 | 3032417 MachoMan
MachoMan's picture

Absolutely, the best way to tell the difference between the two is how large their smoke plumes are after the first couple laps of the F1 race...  (peugeot besting all other manufacturers, ever).

Tue, 12/04/2012 - 11:40 | 3032477 smiler03
smiler03's picture

Peugeots are smoking?

 

Nor surprising considering that they haven't made an F1 engine for 12 years.

Tue, 12/04/2012 - 12:39 | 3032660 MachoMan
MachoMan's picture

were...  it was a joke...  but I never underestimate the ability of people to ignore the obvious.

Tue, 12/04/2012 - 09:30 | 3032035 northerngirl
northerngirl's picture

Will the insanity ever stop?

Tue, 12/04/2012 - 09:34 | 3032048 CPL
CPL's picture

We'll pencil in lunch hour, but it'll have to continue right afterwards.

Tue, 12/04/2012 - 09:41 | 3032075 JPM Hater001
JPM Hater001's picture

Will it stop?  Hell, I'm about to get naked and start the party.

Tue, 12/04/2012 - 09:48 | 3032100 timbo_em
timbo_em's picture

Of course not. After all they are politicians and socialists. Hollande, Montebourg and Moscovici have just begun their journey.

Save financials 1.0: check. Save automakers 1.0: check. Save unviable steel producers: check. Save unviable shipyards: tbd. etc.

France is knee deep in doo doo while the French people still think France is going to save Europe. 2013 will be a very interesting year for the Grande Nation.

Tue, 12/04/2012 - 09:53 | 3032112 CH1
CH1's picture

Will the insanity ever stop?

I dunno. Reality has been suspended, leaving those of us with functioning minds feeling almost sick.

Where IS reality? Will it never return? Has evil replaced good forever?

Tue, 12/04/2012 - 10:07 | 3032158 SilverDOG
SilverDOG's picture

Where was reality?

 

Even those with functional minds in western society have been "mislead"

for a considerable duration. 

No worries needed. Regression to natural selection reality, about to ensue.

 

Tue, 12/04/2012 - 09:54 | 3032119 Ethics Gradient
Ethics Gradient's picture

Look, if you’ve been unsuccessful, you didn’t get there on your own. If you were unsuccessful at opening or operating a business, some government official along the line probably contributed to your failure. There was an overzealous civil servant somewhere who might have stood in your way with unreasonable regulations that are part of our system of anti-business red tape that allowed you to not thrive. Taxpayers invested in roads and bridges, but you might have faced city council members who wouldn’t allow you to use them. If you’ve been forced to close a business – it’s often the case that you didn’t do that on your own. Somebody else made that business closing happen or prevented it from opening in the first place.

Stolen and slightly edited from: http://thewhitedsepulchre.blogspot.de/2012/08/if-youve-been-unsuccessful-you-didnt.html

Tue, 12/04/2012 - 10:08 | 3032191 Spastica Rex
Spastica Rex's picture

What's good for the goose...

Tue, 12/04/2012 - 10:52 | 3032347 phalfa5
phalfa5's picture

you didnj't build that .....

Tue, 12/04/2012 - 09:30 | 3032036 Tirpitz
Tirpitz's picture

Well, seems due to rising exports the displayed car sales inside the EU had to be lower.

Tue, 12/04/2012 - 09:31 | 3032041 GeezerGeek
GeezerGeek's picture

I wonder - are sales of Lamborghinis and Ferraris up or down? That would show the health of the people who count, the .1%.

Tue, 12/04/2012 - 09:36 | 3032054 CPL
CPL's picture

Saudi' princes need something to drive their children to school as the fuck around toy. 

 

I would be interested in seeing Range Rover sales.  Hard to find an inch on the planet where there isn't one because of their tonka tough reputation and an engine that can run off a hobo's piss..

Tue, 12/04/2012 - 09:46 | 3032090 resurger
resurger's picture

my friend almost died in a Range Rover accident, his Auto Driver malfunctioned on 70MPH ... he sued them and won

Tue, 12/04/2012 - 10:16 | 3032225 francis_sawyer
francis_sawyer's picture

and I'll bet his jew lawyer made away with all the settlement fiats...

Tue, 12/04/2012 - 12:20 | 3032613 CH1
CH1's picture

(Breaking my own rule on trolls, but once in a while...)

Fuck you, you biggoted piece of shit. Deal with your own goddam sins.

Tue, 12/04/2012 - 14:19 | 3033006 resurger
resurger's picture

lol , no he was not a kyke

Tue, 12/04/2012 - 09:52 | 3032111 DavidC
DavidC's picture

They were good until they became bloated bling mobiles driven by arseholes.

DavidC

Tue, 12/04/2012 - 09:56 | 3032125 Cypher_73
Cypher_73's picture

This ^

Tue, 12/04/2012 - 12:23 | 3032612 smiler03
smiler03's picture

 "They were good until they became bloated bling mobiles driven by arseholes"

 

OMFG!! Are you suggesting British Royalty are arseholes?

Be right back, there's a knock at the door. The Police are outside...... in a Range Rover?

http://www.flickr.com/photos/policeblue999/6922666850/

Tue, 12/04/2012 - 14:07 | 3032957 Winston Churchill
Winston Churchill's picture

I was visiting the Range Rover production line the day the first model

being exported to the US came off the line.My host,the line manager,

put me in the first car off to try.It had just passed QC.

Most everything in the car didn't work.Hope they got better.

Tue, 12/04/2012 - 11:54 | 3032517 smiler03
smiler03's picture

@ CPL

 

August 2012. Jaguar Land Rover has increased sales by a third.

http://www.bbc.co.uk/news/business-19193124

Tue, 12/04/2012 - 09:44 | 3032057 GetZeeGold
GetZeeGold's picture

 

 

are sales of Lamborghinis and Ferraris up or down?

 

Those guys only sell their cars to people that have atually earned their money.....and they don't have to report crap to the public.

Tue, 12/04/2012 - 09:53 | 3032113 Rip van Wrinkle
Rip van Wrinkle's picture

Bankers EARN money??

 

Please, do fuck off. Steal more like.

Tue, 12/04/2012 - 10:08 | 3032186 GetZeeGold
GetZeeGold's picture

 

 

Dude we don't steal it.....we print it. Then we leave for home in our Ferrari's.

 

Instructional video.

http://www.youtube.com/watch?v=6Q6VsR_4PuQ

Tue, 12/04/2012 - 10:12 | 3032208 Spastica Rex
Spastica Rex's picture

Buy American

Those guys in Brunei do.

 

Tue, 12/04/2012 - 14:11 | 3032980 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

I was working in Switzerland when a new Ferrari engine and mechanic came in from Italy on a 767 Royal Brunei flight just for this mission, (I got on board to look at the aircraft it had gold faucets and was pimped liked I’d never seen). The story was that the Ferrari that was shipped just 3 weeks before was unloaded and driven right away,before oil was added and the engine seized on the tarmac, hence 'Fabio' was being picked up and flown personally to bring a new engine to install. 

Tue, 12/04/2012 - 09:43 | 3032080 Joe Davola
Joe Davola's picture

I figure their sales have to be skyrocketing to the 'need to make a quick trip to Switzerland' crowd.  Of course, they might need a little more space for 'junk in the trunk' on the return trip.

Tue, 12/04/2012 - 09:50 | 3032099 moriarty
moriarty's picture

Lambo’ is part of the VAG group (apparently that why they are more reliable these days, sadly not that I am in a position to know) and the prancing horse is owned by Fiat.

 

Tue, 12/04/2012 - 09:52 | 3032109 forwardho
forwardho's picture

 GG, Will try to find link for you, In Italy, ferraris are being stoned, keyed and vandalized. There is a glut of used high end cars on the market. This is the natural conclusion to the all pervasive "class warfare" meme that has been promulgated by the Govts and media of the world. What has been sown, will reap but a bitter, meager yield. This misdirection has become a part of your very being. The ignorance of our people, will in the end, destoy us.

Tue, 12/04/2012 - 09:35 | 3032055 desirdavenir
desirdavenir's picture

PSA should really try to sell cars in the US: around 60 miles/gallon, price around 15000€ for standard cars...

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