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.

I welcome the step. It gives management credibility. What we would look for now is whether this outlook is just part of a series of revisions that might come later or whether today's guidance is valid for the rest of 2002.