Carmakers Edgy About Impact of Ukraine Crisis

Carmakers say political tensions over Russia's intervention in Ukraine could upset the still-fragile recovery of Europe's auto market, the Associated Press reports.

Analysts have estimated that Europe's car sales in 2014 will grow 2%-4%. But those forecasts, which include the Russian market, now appear too volatile to assess.

Fiat SpA CEO Sergio Marchionne declares that he has "not a single doubt" that further escalation will hurt demand in western Europe. "All we can do," he adds, "is hope for the best."

Other carmakers agree. Ford Motor Co. sold about 120,000 cars in Russia last year. Now, says Ford of Europe CEO Stephen Odell, "You have to be flexible." The Renault-Nissan alliance, which has partnered with Lada-maker OAO AvtoVAZ, tells AP the company must be "very prudent" about planning.

But Allan Rushforth, who heads Hyundai Motor Co.'s operations in Europe, is optimistic. He tells the news service that the current instability isn't likely to hurt the South Korean carmaker's longer-term sales growth trajectory in Europe.