European consumers ignore most famous US brands

Pravda ^ | 10/28/2004 | staff

[liberallarry]

Market specialists believe that the reduction of sales in Europe might last for quite a long period of time

The US government is suffering losses not only in Iraq. Cult American brands such as Marlboro, Coca-Cola, MsDonald's, Ford and others are currently experiencing a decline on the European market, particularly in Germany in France.

According to the results of the third quarter of this year, American companies have found themselves in a rather unpleasant situation. Car makers Ford and General Motors (trademarks Opel, SAAB, Cadillac, Chevrolet, etc) have had a mass of layoffs recently at their enterprises in Germany and France. GM is suffering $236 million of losses: it plans to fire 12,000 employees in Germany, where the company is losing both its popularity and the car market share. The face of the American business - the companies McDonald's, Coca-Cola and Philip Morris - have suffered considerable losses in Europe in the third quarter of the year too.

US companies' managers insist on the non-political explanation of the sales crisis in Europe. They think that the unfavorable situation has been caused with the longstanding stagnation of the European economy, which coincided with such business-unfriendly factors as the increased tax on tobacco production in Europe nationwide, for example. Spokespeople for MsDonald's corporation explain the decline with the high unemployment level in Europe, which made the purchasing capacity slide and increased the number of people, who prefer to eat at home.

The decreasing popularity of American brands can be explained with growing anti-American sentiments in Europe, presumably caused with the US foreign policy. Jeans, Marlboro cigarettes and Coca-Cola used to symbolize the American dream - the country, where everything is possible. History changed such a perception: the USA and its world-famous brands are now associated with the war in Iraq, multi-billion war costs and scandals with Iraqi prisoners in the notorious Abu Ghraib prison.

Market specialists believe that the reduction of sales might last for quite a long period of time. They are certain that the problem has not been caused with a short-term psychologically justifiable boycott of American products. European young people ignore and disapprove the American lifestyle, which used to flourish for decades, selling many American products worldwide.

The warnings, which were made in May-June of the current year, are coming true to life now. Clothing company Gap closed its stores in Germany and announced about the 10-percent reduction of its sales volumes on the European market. Disneyland in Paris is suffering losses and is in vital need of support from its American headquarters. Wal-Mart, the world's largest network of supermarkets, is currently suffering losses in Germany for the first time in history.

The widespread propaganda of healthy lifestyle became another reason, which sent US companies to the bottom. Cowboy Marlboro and Ronald McDonald do not help here either. To crown it all, several recently released movies shattered the American principles even further.

The film Super Size Me tells of a reporter, who ventures to risk his health for the sake of an experiment. He ate only McDonald's for a month and became a fat, lazy man as a result of the fast food diet. The film has caused a considerable damage to the global corporation of hamburgers. Documentaries called Corporation and Fahrenheit 9/11 added more fuel to the fire as far as the image of the USA is concerned.

Those films will definitely not shock the ardent critics of America in Europe. US companies have to face the real threat of losing their consumers on account of strong anti-military sentiments, which may break the old tradition of worshiping the American culture and American brands.

[Tulane]

File this under:

F*ck France and Germany, we don't care.

[wrathof59]

So what, in the long run the USA is better off severing its ties with the French and German, to economically rely on these two back-stabbing adversaries would be foolish.

[holymoly]

GM is suffering $236 million of losses: it plans to fire 12,000 employees in Germany

Nothing like cutting off your nose to spite your face.

[MisterRepublican]

Mister Republican ignores ALL European brands, famous or not.

[billorites]

When I was in France a couple of summers ago I frequently McDonalds because I had my three kids with me and it was a reward for their good behavior.

One thing I liked was that I could get a Heineken or a glass of wine with le Big Mac.

Does that prove the cultural superiority of the French?

Well, maybe...

[billorites]

"Mister Republican ignores ALL European brands, famous or not."

Even Pilsner-Urquel?

[AlexW]

I dunno about the jerks in France and Germany, but in
central/east Europe, where I live much of my time, American brands are as popular as ever.
Go to Budapest, and there is a McDonalds on almost every corner.. While I hate McDonalds, they are popular.

I do not smoke, but American brands are what I see people smoking.

Coke and Pepsi are popular...I just don't see any American beer, but in one Slovak town where I have lived, there is a Jack Daniels Pub :)))

[geros]

Well, the article is all nonsense. However, think about it, if Europeans were to stop using products invented by America that would include 99% of all modern technology and they'd be back in the steam engine age.

[MichelleWSC]

Just more liberal BS scare tactics about how our economy will tank because the EU hates America and is avoiding out products. I say, good!!! We don't want cheese eating surrender monkeys enjoying Coke-cola or Big Macs

[Mr. Lucky]

That would represent the New Europe, of course.

[Ready4Freddy]

Room temp Coca Cola sux. ;>)

[Mr. Lucky]

That would represent the New Europe, of course.

[carlyaxt]

Lay off more Germans and Frogs.

[Hazzardgate]

the notorious Abu Ghraib prison.

Yeah I'm so sure people are not smoking US tobacco or eating that poison McDonalds because of Abu Grabass. Twats...

[Red6]

Typical Pravda.

Actually with over 11% unemployed, falling wages, government spending caps, raising prices the Germans and the French (Both stagnant economies) find themselves hard pressed to sell anything. Ask BMW how their "national" sales in Germany are going? What's keeping them alive is exports right now. Their domestic market is in shambles.

Backrupcy filings are high. Durable goods spending at all time lows.

The heading of the article could read. "Spending in Germany hits all time low." or "Consumer spending hits all time low." The fact that US products are sold their and affected from a crappy market is kind of "no duh." The rest of the fluff in the article, well, lets just say it's Pravda.

The only question I have is what the Russian STATE agenda is for this article? What is the underlying purpose of this Information Operation?

Red6

[frithguild]

Funny - seems like farfegnugen is in short supply too. Is that Bush's fault too?

Volkswagen Reports Seventh Quarterly Profit Decline (Update4)
Oct. 28 (Bloomberg) -- Volkswagen AG, Europe's largest carmaker, had a seventh consecutive decline in quarterly profit on higher sales incentives and the strength of the euro versus the dollar. The company reiterated its 2004 earnings forecast.

Third-quarter net income fell 65 percent to 76 million euros ($97 million) from 217 million euros a year earlier, Chief Financial Officer Dieter Poetsch said on a conference call. Sales rose 0.8 percent to 21.5 billion euros from 21.3 billion euros.

Chief Executive Bernd Pischetsrieder, 56, plans to save more than 1 billion euros this year through a reorganization plan.
***
The company's Western European sales fell 2 percent in September, its market share in China is down by more than half to 26 percent from 54 percent in 2000. The company also is facing potential strikes from German workers over a pay dispute.

***
Volkswagen and labor negotiators are seeking to reach an accord today on cost cuts, job security and pay, aiming to beat a midnight deadline that would allow the union temporary walkouts. A strike would affect all the company's divisions in Germany, Poetsch said.

Pischetsrieder, an engineer and former BMW chief executive who succeeded Ferdinand Piech at Volkswagen in 2002, has said he plans to cut 4 billion euros in costs and eliminate 5,000 jobs by 2005 to boost profit. Earnings have slumped every quarter since the beginning of 2003.

***
Volkswagen doesn't expect an increase in the European market this year. The German market may be below than 3.2 million vehicles, while demand in the new European Union member states such as Poland is slowing, Poetsch said.
***
http://quote.bloomberg.com/apps/news?pid=10000100&refer=germany&sid=a4gyVOfSM7pw

[liberallarry]

The only question I have is what the Russian STATE agenda is for this article?

No idea. Reading Pravda is difficult.

[processing please hold]

Amen...I love it...the idiots are shooting themselves in the foot...what morons...lol