Companies like Volkswagen, PSA Peugeot Citroen, Renault, and Fiat are said to be reviewing their production plans and turning more toward smaller vehicles. They also are looking at the United States with some apprehension that our economic situation will get worse and thus influence their bottom lines.
Citigroup has made forecasts about the auto industry and it recently revised its predictions for 2008 and 2009. It said that 2008 will witness the first year of sales decline in the global auto market since 2001. How bad? Citigroup said that the drop will be 1.1 percent.
Even luxury and sports car companies are being affected by the economy. While BMW, Mercedes-Benz and Porsche seem to be weathering the storm as far as a general market slowdown is concerned, they are feeling the effects of the meltdown of the investment banks.
Our take? Funny thing! Americans, blissfully driving their Ford Excursions and HUMMERS, didn’t start loving them until gasoline cost $4 a gallon. We guess that when you feel a squeeze on the wallet or pocketbook, you discover all sorts of things.