MI­LAN:

The Pak Banker - - COMPANIES/BOSS -

Ital­ian car maker Fiat's (MIL:F) chief ex­ec­u­tive Ser­gio Mar­chionne ac­cused Ger­man ri­val Volk­swa­gen of be­ing too ag­gres­sive in its pric­ing strat­egy, when con­di­tions are al­ready tough in the Euro­pean auto in­dus­try.

"It's a blood­bath of pric­ing and it's a blood­bath on mar­gins," he was quoted as say­ing by the In­ter­na­tional Her­ald Tri­bune. Mar­chionne, who is also head of U.S. au­tomaker Chrysler, called for the Euro­pean Com­mis­sion to step in and help the sec­tor face its huge over­ca­pac­ity prob­lems, the pa­per said. "What they should do is co­or­di­nate a ra­tio­nal­iza­tion of the in­dus­try across the pro­duc­ing com­pa­nies," he said. "The ones that re­ally have not acted on this are the French and the Ger­mans, who have not taken out any ca­pac­ity at all." Re­sults from Euro­pean mass-mar­ket car mak­ers this week are set to mir­ror the re­gion's debt cri­sis as Ger­many's Volk­swa­gen weath­ers the deep­en­ing slump while peers PSA Peu­geot Citroen, Re­nault and Fiat strug­gle with plung­ing Mediter­ranean sales.

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