28
September
2011

Economics: European manufacturers better armed to face the recession

Posted in: BMW 5

According to the rating agency Fitch, the manufacturers of the old Continent are much more able to cope with the crisis than in the past.European homes are better prepared for the crisis in the past. This is the thesis of the rating agency Fitch, for which the builders of the old Continent after to be collapsed in 2008 and 2009 would be now vaccinated against a new recession.

Wholesale, Fitch says that if the GDP of the euro area still stalling in 2012, the shots portfolio companies specialized in the automobile would be rather reduced in recent years.

The reason is simple, unlike what happened in 2008, the first alarm signals are more easily detectable. According to an official note of Fitch, “manufacturers may prepare for a potential slowdown in sales.” Better yet, they are there are already prepared “.”

At the same time, society of rating analysts point out that the European houses now have “more pared-down structures“, “most diverse” and “more liquidity” lines.

In short, “many groups have already adopted the necessary measures to slow down or reduce production, indeed avoiding a subsequent increase in the stocks.

A specific point is put forward: the hiring of more frequent interim workers – between 10% and 15% of the strength of each manufacturer – to take advantage of labor œuvre in full period but also to adapt during more difficult times.

The other strong point of the marks of the old Continent is to benefit from higher liquidity of the order of 50-70% compared to June 2008, exception made for Fiat after its takeover of Chrysler.

For Fitch, Volkswagen, Renault and PSA Peugeot-Citroen are three groups that best resist the crisis thanks to their conquest of the world markets. Groups such as BMW and Mercedes also bear the recession because of their rather wealthy clientele.

Last information grim, the Fitch agency dropped its forecast of sales of automobiles in Europe. The year 2011 should be concluded with a decrease of 0.5% then 2012 should lead to a stagnation of the figures.


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