The outlook for the sector is affected by US-China tensions and Renault’s maxi-plan on cutting costs and jobs. Confirmations on the 6.3 billion loan are expected on FCA
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The auto sector in Europe is suffering due to the maxi-cuts of Renault, which has announced a € 2 billion economy plan, which foresees the cut of 15 thousand jobs, 4,600 of which in France. It has been interpreted by the market as a spy for the future prospects of the sector, already penalized by US-China tensions, which will once again put a strain on the recovery of world trade, already put to the test after the “tariff war” and the coronavirus pandemic. . A difficult picture that is reflected in a drop in the whole sector at European level, with the Eurostoxx sub-index falling by 2.6% and being the worst in the Old Continent. Same trend in Piazza Affari, where FCA, CNH Inustrial and Pirelli are among the worst.
Sales for the group controlled by Exor also arrive in the aftermath of Moody’s decision which, in closed markets, confirmed FCA’s Ba1 rating with an “evolving” outlook (from “under review”). A piece of news that analysts define as “neutral” for stock exchange purposes. To this situation, however, the “yellow” on the loan requested with the state guarantees is added: the MEP and former minister Carlo Calenda wrote on Twitter with a critical tone “Congratulations to Sace who in record time approved the FCA guarantee on the board of directors” . But a dry “no comment” came from the automotive group.
In the rest of Europe, while Renault sells 3.3%, Fca Peugeot’s “betrothed” (-3.2%) also lags behind, while Continental (-4.1%) and Volkswagen (- 3.2%). The latter, moreover, has announced a total investment of around 2 billion euros for the development of electric mobility systems in China, the largest automotive market in the world. China, which accounts for 40% of Volkswagen’s sales, is “the largest electric mobility market in the world” and “1.5 million new energy vehicles will be sold in the country in 2025,” the German group said.
(Il Sole 24 Ore Radiocor)