Industry experts believe a Greek exit from the unified euro currency following the recent veto to the austerity program called by the European Union could affect southern European markets, along with Fiat Chrysler Automobiles and PSA Peugeot Citroen.
The two companies might be in jeopardy because they have a high exposure to those particular markets, with Spain and Italy among the continent’s countries that have posted massive new car sales growth lately, according to Barclays analyst Kristina Church. “The sales data we are seeing coming through so far is not showing any impact as yet, but it is definitely a wait-and-see scenario,” she comments. Exane BNP Paribas adds that a fallout from the Greek issue would most likely primarily affect markets such as Italy, Spain and Portugal. The firm added PSA and FCA are the most likely carmakers to suffer as those markets make up around 12 percent of their group deliveries – and in turn Volkswagen is the safest as it only sells 5.2 percent of volume there. “We recognize this as a potential catalyst that could cause European consumers to postpone their purchase of new cars, but we don’t take that as a base case scenario,” said Edoardo Spina of Exane BNP Paribas. The bank now believes Greece is likely to exit from the euro area, but says the European Central Bank has been hard at work preparing for such an event.
Back in 2013 the European continental sales plummeted to a two-decade low level following a six-year slump in demand and since the sales have been on a very slow turnaround. Deliveries soared 5.4 percent last year and have now grown by 6.7 percent after the first five months of 2015.
Via Automotive News Europe