The date of the opening of the Geneva Motorcar is getting closer, but this does not bring good news to French cars. On the contrary, as the European crisis continues to spread, the French automobile market has become increasingly overcast.

On August 6, 2012, according to the data released by the French Automobile Manufacturers Organization, in the first seven months of the year, the total sales volume of the French automobile market was 1,436,600, and the sales volume in the same period of 2011 was 1,699,600 units, which was a year-on-year decrease. 12.4%. Among them, in July, the sales volume of the entire market was 179,600, which was 5.6% lower than the same period in 2011. This trend began in 2011 and became the norm in the French automotive market. According to the statistics of 2012, this is not the worst time for French cars. As early as March, the decline in the French car market has reached 23.5%. However, the problem is that the French car market still does not see signs of improvement. Some analysts believe that this is the most sluggish year for French cars since 2000.

In the French automobile market, the situation of various vehicle manufacturers varies. Among them, the sales of European and American auto manufacturers are generally sluggish. Asian automobile manufacturers represented by Nissan and Hyundai are continuously expanding their markets. Statistics show that in the first seven months, Nissan’s sales reached 49,700 units, an increase of 3.8% year-on-year; Hyundai Motor Group (Hyundai Motors and Kia Motors) sold 36,600 units, an increase of 30% year-on-year. Among them, Hyundai Motor sales of 16,700 vehicles, an increase of 36.2% year-on-year, the largest increase for the entire market; Kia Motors sales of 19,900, an increase of 25.1%.

The continuing crisis has brought disaster to the domestic vehicle manufacturers in France. In response to changes in the market, French automakers have had to reshape their businesses. The measures of PSA Peugeot Citroën and Renault Automobile Group have been subjected to great pressure from France, including opposition from the Elysee Palace and protests from industry associations and suppliers.

The legal system was hit hard again

In the first half of 2012, the sales volume of the 27 EU countries was 6,644,800 units, a decrease of 6.8% from the same period in 2011. In the major national markets, the sales volume of the French automotive market fell behind Italy and became one of the hardest-hit areas in the European automobile market.

Affected by the European debt crisis, the entire European automotive market (EU-27) has performed exceptionally weakly. In the report released by the European Automobile Manufacturers Organization, the sales volume of the regional market in the first half of 2012 was 6,644,800 units, a decrease of 6.8% compared with the same period in 2011. In the major national markets, the sales volume of the French automotive market fell behind Italy and became one of the hardest-hit areas in the European automobile market.

According to the statistics from the French automobile manufacturers, in the first 7 months of 2012, the sales volume of PSA Peugeot Citroën and Renault Automobile's two major vehicle manufacturers was 820 thousand, which was 16.7% lower than the same period of 2011, and in 2012, The first seven months are one more sales day than the same period in 2011. Among them, PSA Peugeot Citroen Group sold 445,400 vehicles, a year-on-year decline of 18.9 percentage points. Looking at the two brands, the sales volume of the Peugeot brand was 233,500 units, down 20.1% year-over-year; the sales volume of the Citroen brand was 211.9 thousand units, down 17.5% year-on-year. Sales of Renault Automotive Group (Reynolds brand and Dacia brand) were 352,900 vehicles, a decrease of 14.1% compared with the same period in 2011. Among them, the Renault brand's sales volume was 296,600 units, down 15.7% year-on-year; the Dacia brand's sales volume was 53,200 units, down 3.7% year-on-year.

The performance of other vehicle manufacturers entering the French market is better than PSA Peugeot Citroën and Renault Automotive Group. Among European automakers, Volkswagen Group (Volkswagen, Audi, Skoda, SEAT brand) sold 173,600 units in the first seven months, and the market dropped by 2.8%. The BMW Group (BMW, Mini, Rolls-Royce) sold 40,300 vehicles, an increase of 1.2% year-on-year. Mercedes-Benz (Benz, Smart) sold 41,500 vehicles, down 1.7% year-on-year. Fiat Auto Group (Fiat, Lancia, Alfa Romeo) sold 37,800 vehicles, a decrease of 24.7% year-on-year. Among US automakers, sales of Ford and General Motors Europe were 61,800 and 63,900, respectively, and sales fell by 14.9% and 18.6% respectively.

Vehicle manufacturers from Japan and Korea become

The highlight of the entire French automobile market. Of the Japanese car manufacturers, Toyota Motor sold 42700 vehicles, a decrease of 4.2% year-on-year. Nissan is still the largest seller of Japanese cars in France. Due to the speed with which new cars are introduced in France, Korean cars have a slightly lower price, so their market share has expanded rapidly.

Turn to emerging markets

In response to this unstable situation, PSA Peugeot Citroën and Renault Automotive have proposed strategic plans for emerging markets. However, due to slower progress, sales in emerging markets have not always been their most important support.

Before the outbreak of the financial tsunami, the frequency of sales fluctuations in the French automotive market was higher than in Germany, the United Kingdom, and other markets. In response to this unstable state, PSA Peugeot Citroën and Renault Automotive have proposed strategic plans for emerging markets. However, due to slower progress, sales in emerging markets have not been their most important support. When the European crisis occurred, the two vehicle manufacturers had to respond.

Because of the poor performance of the market, PSA Peugeot Citroen dismissed Stref in March 2009 and appointed Philip Varan as its new CEO. Shortly after taking office, Valan proposed a strategy for turning to emerging markets, including plans for the Indian, Chinese, and Russian markets. In the course of the PSA reform, the European crisis put pressure on its plans, and for this reason he had to stop entering the Indian market. In this way, the focus of the PSA Peugeot Citroen Emerging Markets program shifted to China.

In France, Varan proposed specific measures for layoffs, closing factories, and selling shares in Gefco Logistics. At the same time, PSA and General Motors have reached a strategic alliance to share the cost, and whether these plans can save PSA Group's remaining variables. Affected by these measures, Valand's own leader has also begun to shake. In the past few days, there have been constant reports that the Peugeot family is not satisfied with the way Varan responds to the crisis and he may be dismissed.

Compared with the situation of the PSA Peugeot Citroen Group, the Renault Motors Group’s crisis will have to be lighter. However, before its strategy for India, Russia, and China was reached, sales of the French car manufacturer could only rely on the European market. On July 30, 2012, Renault’s financial report showed that its profit fell from 780 million euros in 2011 to 630 million euros in the first half of the year. It is estimated that in the second half of the year Renault’s sales in Europe will decline by around 2%.

Based on this, Renault Automotive speeds up the introduction of models in the Indian market; in the Russian market, it continues to promote cooperation with AVTO VAZ and puts some of its models to AVTO VAZ; in the Chinese market, it cooperates with Dongfeng. Is in the approval stage. After the series of plans have been implemented, Renault’s situation will change.

For both French car manufacturers, the speed of getting out of the crisis depends on their strategic advancement in emerging markets.