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Europe's struggling mass-market carmakers are furious with Volkswagen for ramping up production at a time when the continent faces huge overcapacity, but the profitable German market-leading automaker shows no sign of slowing down to save its rivals.

A feud between Europe's biggest carmakers erupted last month when Fiat boss Sergio Marchionne accused Volkswagen of contributing to a "bloodbath" by seizing the euro zone's debt crisis to wage a price war in Europe.

Volkswagen, which dominates the European car market with a share of 23.9 percent, responded by threatening to quit the region's main industry body, the European Automobile Manufacturer's Association ACEA, unless Marchionne gives up the body's presidency.


 


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Too Powerful? Volkswagen Threatens To Starve European Automakers By Ramping Up Production

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