Fiat Accuses VW Of Going For The Throat With Agressive Pricing In Economic Downturn

Volkswagen rebuffs accusations brought earlier today, July 26th, by Fiat’s CEO Sergio Marchionne.

Earlier today Fiat’s CEO Sergio Marchionne accused Volkswagen of choosing an aggressive pricing strategy when European auto industry is already struggling with tough conditions.

    “It’s a bloodbath of pricing and it’s a bloodbath on margins,” he was quoted as saying by the International Herald Tribune on Thursday, July 26th.

Volkswagen’s European market share increased from 22.6% in the first half of 2011 to 23.9% in the same period this year, taking into consideration that groupwide sales decreased 1.5% and the market fell 6.8%.

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jeffy210 - 7/26/2012 7:28:23 PM

+1 Boost

So wait, what's the problem?

chewy - 7/27/2012 1:44:20 AM

+1 Boost

Hate to use the word but unsustainable almost applies here as a permanately declining market and excess capacity and governments trying to keep the excess capacity has been sounded often. Apparently Opel and Citroen- Peugeot is in a particularly bad spot. Having Chrysler has actually worked out quite well for Fiat. VW is going for the jugular investing big money while others are pinching pennies trying to squeeze a profit in fear. Of course all are anxiously waiting for things to return to better times.

JustaCar - 7/27/2012 10:44:52 AM

+1 Boost

Marchionne can't accept the fact that Fiat does not have the products to compete with VW, so he accuses VW of aggressive pricing?!!!

HughJass - 7/28/2012 10:17:51 AM

+1 Boost

Just wait until the Chinese clones arrive at Walmart, Sergio ain't seen nothing yet and Europeans won't care because like Americans, its all about price and if you can get a car for $2, they won't be able to resist.