Tsunami Not The Real Reason For Profit Warnings

Monday, 1. August 2011

I have commented previously on the excuses made by the manufacturers about the drop in car availability and the increased prices as a result of the Japanese tsunami. This was pretty much backed up by Peugeot Citroen when they issued a profit warning which they put down to the tsunami and earthquake in Japan and problems with component supplies. It all seemed to make sense and I kind of understood why the manufacturers were putting out such strong statements at the time about the effects of the tsunami.

However, that sort of thing works unless two of your competitors (Nissan and Daimler) say on the same day that the disruption to production following the tsunami was in fact minimal.

If you’re going to lie to cover the fact that you’re not selling enough cars get the story straight! Peugeot Citroen shares dropped by 8% as a result! By Graham Hill