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

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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chewy - 8/29/2012 4:09:35 PM

+1 Boost

VW invested/diversified/engineered while the struggling competition did not. The results are not unexpected.

Steve - 8/30/2012 12:26:29 AM

+2 Boost

Hang on for a sec! VW is doing well, while Fiat, Peugeot, Renault and GM are not, so we should punish VW so the laggards can feel better? Huh? Why not just give the losers billions of Euros in bail-outs, to reward them for their under-performance, like we do in The States? That would make more sense.

Seriously folks, I hold the opinion that those who do well, deserve to reap the rewards of their success, while those who don't (are ya listening, GM?) should either pull their socks up and get with the program, or go the way of the dinosaurs. I have no soft spot on my heart for obsolete businesses hanging around.

USNA1999 - 8/30/2012 5:26:37 AM

+1 Boost

I guess SOCIALISM is still running through their veins. Typical EU and Obama mentality, lets' screw the successfull companies in order to keep the money losing ones around. Let them fail!

MorePower - 8/31/2012 7:25:01 PM

+1 Boost

You should consider the amount of jobs that would have been lost, from suppliers to local businesses like dinners and shops, had someone not stepped in and bailed out the auto industry. You should also not forget, that it was BUSH that gave those same automakers several installments of money before Obama was forced to save Chrysler and GM.

mini22 - 8/31/2012 5:15:51 PM

+1 Boost

Not quite all the facts here. A few other things are going on.VAG is also discounting its cars 25% off to increase market share in Europe. They can afford to do this becasue they sell their cars in China.Another point. VAG is deliberately overinflating sales where dealers are buying cars and then reselling as used cars. The dealer cars are included in the sales volume.We complain about the Chinese dumping on our markets. This seems a form of dumping as well.German car makers had better be careful. France and the Meditarainian countries may end up slapping big tariffs on Germany if this continues to go on.then VAG, BMW and Mercedes will begin to suffer.

MorePower - 8/31/2012 7:26:05 PM

+1 Boost

VW is taking a few plays from the Apple playbook.