For the second time this year, Fiat S.p.A. has lifted its European new-car sales outlook. But while this may be true, its forecast remains more conservative than those of competitors and analysts.
Last Oct. 21, Fiat said that its total passenger-car sales in Europe (all EU members plus Iceland, Norway and Switzerland) are predicted to drop by about 7% to 13.47 million.
Last July, Fiat had forecast a 10% drop. On the other hand, the company’s forecast last April was for a 15% decrease. Industry association ACEA said that carmakers sold 14.48 million cars in Europe last year.
Last week, Fiat rival PSA/Peugeot Citroen said that it estimates that European sales will drop by about 5% this year. PSA made a previous forecast of a 7% decline. Earlier this month, J.D. Power Automotive Forecasting revised its estimate for European volume to a 6.4% decline from a prediction of a 6.9% drop in September.
Goldman Sachs’ financial analysts predict a 6% drop for Europe this year. For the current quarter, Fiat expects a double-digit decline for Europe's new-car sales in the current quarter because of struggling markets such as Germany and Italy.
Sales in Germany fell 27.5% through September after being artificially inflated by government scrapping subsidies provided in 2009 to maintain or increase registrations during the global crisis.