Demand for new cars in Europe plungest to lowest since 1995

Article by Christian A., on January 18, 2013

There’s not much hope for mass market automakers in Europe for this year even as they attempt to reduce factory capacity and offer heavy discounting. Their margins will continue to drop from 2012, which marks a 17-year low for the demand for new cars in Europe that seems to be headed to a recession. Registration data released on Wednesday also showed the biggest annual drop since a 16.9% downturn in 1993, highlighting the crisis for automakers in Europe. Consumers are fretting over austerity measures, job security and rising living costs, and those who want to buy new cars are struggling to secure credit. The European automotive industry association ACEA said that even Volkswagen’s sales dropped. But Hyundai and Kia proved that it’s possible to increase sales even during a downturn.

According to Peter Fuss, senior advisory partner at Ernst & Young's Global Automotive Center, the practice of registering new cars before selling them with huge discounts as used vehicles would boost sales figures. Fuss said that since sales figures for the year were artificially inflated because of self-registrations by dealers and automakers, especially in Germany, the actual drop in sales is much worse.

Mass market carmakers have been terminating workers in plants throughout Europe that are operating below capacity. Renault announced job losses after Honda, Ford, PSA Peugeot Citroen and Opel all did. ACEA divulged that new car registrations declined by 8.2% to 12.05 million vehicles in 2012, the lowest level since 1995. It also said that losses in all major euro zone economies, combined with two fewer working days on average, resulted to a 16.3% drop in European Union registrations last month to 799,407 vehicles. This represented the worst drop in 26 consecutive months or since October 2010.

Topics: europe, sales

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries