President Barack Obama’s re-election bid today in part is a referendum on the government-backed auto- industry restructuring. Win or lose, his administration’s work on the U.S. auto industry is held up as a model for Europe.
PSA Peugeot Citroen, whose shares plummeted 60 percent in the last year as car sales plunged, may get a funding lifeline from the French government for its finance arm, a move that would amount to an indirect bailout of the crisis-hit automaker.
Daimler AG, the world’s third- largest maker of luxury cars, is planning to cut annual costs by at least 1 billion euros ($1.31 billion) in response to the region’s deteriorating auto market, a person familiar with the matter said.
Daimler AG and Porsche AG provided evidence that the worst European car market in 17 years has started to spread to the luxury brands, mirroring a broader recession that has spilled from southern Europe to Germany.
Daimler AG, the world’s third- largest maker of luxury vehicles, failed to keep pace with competitors in the second quarter, projecting slower sales growth than Bayerische Motoren Werke AG and posting truck profits that trailed Volvo AB.