European Car Makers are Losing Their Own Market!

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Complaining by the French Minister!

Recently, Arnaud Montebourg, the French Minister for Industry came with the comment that Korean car manufacturers (Hyundai and Kia) were selling in Europe with dumping prices.

He was also complaining about the decrease of tariff imports for the South Korean cars that are imported in EU. The tariff imports are: small cars -- 6.6% and mid-size and large cars – 4%. However, according to the South Korean and European Union, new commerce agreement there will be no tariffs after 2015.

European Car Sales Situation!

In order to show this situation on the European market we should put the numbers in perspective. In the first nine months of 2012, the European car market decreased with 7.2% and in the same period Hyundai`s sales increased in 9.6% and sales of Kia increased in 20.5%.

However, the biggest victims of this new situation are the European car manufacturers, with an accent on the car makers from France who are trying to survive in this European economic crisis. The figures like 200 million euros monthly loss of PSA (Peugeot and Citroen) and pessimistic comments on the French product competitiveness from Renault CEO are showing the bad situation of the car makers in France.

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Hyundai and Kia are Employing More than 280,000 Europeans!

At the other side, Hyundai is importing Santa Fe, Veloster and i40, the vehicles that are not best sellers and Kia is importing Picanto and Rio. All the remaining models (Hyundai i30 and ix35, as well as C`eed and Sportage) from this 2 Korean brands are produced in the European factories in Czech Republic and Slovakia. However, these factories are employing more than 280,000 Europeans.

It is very important to say that the car buyer has now more choices to buy a vehicle than ever and there are very big market trend changes. Even the premium car manufacturers started to produce models in the lower classes like Mercedes-Benz A-class, BMW 1-series, Audi 1etc. With the Korean and Japanese presence in these classes there is less space for the European premium car makers anymore.

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The Real Reason for French Car Makers Loses!

According to the opinion of many automotive experts, there are no bad cars today. The difference in the offerings in every segment, are much smaller than they were in the past. The main difference is in the brand logo, design, price and of course warranty (this is the area where the Asian producers are absolute leaders).

The French cars became undesirable and unreliable, so the people are replacing them with Korean cars. Even the Europeans started to think French cars are not worthy for their price. That is why the French Minister for Industry should look what their car companies are doing in the field of quality, design, sales strategy and inefficient production than blaming the Hyundai and Kia for the loses.

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