[Analysts were stunned by Porsche's move, which they said was a radical departure for a traditionally conservative company.] Porsche told us that they were going to invest back into the company rather than pay higher dividends, ... Now they're investing in one of the least profitable car companies in Europe.

Until now, the Germans thought, 'We can make it with diesel.' They saw hybrid as a technology that was just filling a gap, ... Now they're seeing that, particularly in the U.S., they're missing a market.

This increases the likelihood that Zetsche will make major changes. He needs to break up all these networks that were built up over the 10 years of Schrempp. It's going to be a painful process.

Schrempp is one of the last dinosaurs of Germany Inc.. He represents a strategy of acquiring assets and building empires that just didn't work.

Until now, the Germans thought, 'We can make it with diesel.' They saw hybrid as a technology that was just filling a gap. Now they're seeing that, particularly in the U.S., they're missing a market.

The outlook that the first half-margin should be similar to the second half last year clearly highlights that the market pressures will continue and that Peugeot is less resistant to these pressures, given that their cost savings are flattening out and the new models are delivering less of a positive volume and mix effect than the company was expecting.