28.07.2012 VW RUNS OUT OF PATIENCE WITH SERGIO MARCHIONNE'S OUTBURSTS

FIAT PANDA - POMIGLIANO D'ARCO 2012

Sergio Marchionne has burnt bridges with Europe’s biggest carmaker, the Volkswagen Group, who this week called on him to resign the Presidency of ACEA, the European automotive industry body. The call follows the Fiat and Chrysler CEO’s latest comments on Thursday, criticising VW’s European pricing strategy.

Marchionne currently holds the rotating presidency of ACEA, the body that represents European carmarkers, his second stint in this position. Although ACEA is supposed to represent all its members, Marchionne has on numerous occasions antagonised the German manufacturers with his views about dealing with overcapacity in Europe. The issue is something that affects Fiat much more acutely that VW, BMW or Daimler, and his pleas for EU assistance to tackle the problem have been mostly ignored.

On Thursday, the International Herald Tribune reported Marchionne as saying on the subject of the European new car market: “It’s a bloodbath of pricing and it’s a bloodbath on margins.” Marchionne is understood to be unpopular with a number of his contemporaries on the European automotive scene, driven in part by his stream of public comments which tend to disperse blame for Fiat’s current difficulties everywhere aside from his own door.

However, the latest sniping seems to have finally drained the patience of VW Group, with Reuters quoting the German carmaker’s communications boss as saying, “Marchionne is unbearable as president of ACEA. In our view, his comments are unqualified yet again. We’re therefore calling on him to step down.” According to the Reuters report, VW may also consider leaving ACEA if Marchionne declines to resign.

 

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