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VW Rebukes Fiat’s Marchionne
Volkswagen AG is lashing out at Fiat-Chrysler CEO Sergio Marchionne over his allegation that VW is pursuing an aggressive pricing strategy in Europe that contributes to shrinking profit margins in the region.
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Volkswagen AG is lashing out at Fiat-Chrysler CEO Sergio Marchionne over his allegation that VW is pursuing an aggressive pricing strategy in Europe that contributes to shrinking profit margins in the region.
Marchionne tells the International Herald Tribune that vehicle pricing in Europe is a "bloodbath."
VW denies the charge and demands that Marchionne step down as chairman of European carmaker group ACEA. A company spokesman declares Marchionne is "unbearable" in that job. VW also threatens to quit ACEA in protest.
The squabble is only the latest exchange in the long-running feud between Fiat and VW. But the clash highlights the gap between German carmakers and their rivals elsewhere in Europe in profitability and factory efficiency.
Daimler, BMW and VW bristle when Marchionne urges them to share the burden of reducing excess capacity in the region. Their factories are running at more than 90% of capacity compared with 60%-75% for other automakers in Europe, according to Bloomberg News.
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