This article considers the reduction in European profits for the American car manufacturers General Motors (under the Opel/Vauxhall brand name) and Ford. In 1997 these manufacturers sold the most popular cars in Europe, but by 2000 other manufacturers were taking over the prime position. The author sees the problem as overconfidence from past successes and underestimation of the competition. Share slides were masked by continued strong growth, at a time when new car prices were in decline. Both companies have now carried out major restructuring of their European operations. Currency issues have further complicated the problems in Europe, but the author sees unimaginative product design and failure to make full use of new technology as being major factors in these companies losing sales.
Samenvatting