New car sales in Europe will continue to decline in 2012, inautonews predicts
New car sales in the European Union area will continue to decline this year, Mircea Z, editor in chief at inautonews.com said Saturday during a motorsport event at Monza Circuit in Italy.
June 10, 2012 -- “New car sales in the European Union area will continue to decline this year,” Mircea Z, editor in chief at inautonews.com said Saturday during a motorsport event at Monza Circuit in Italy.
“The situation in Europe is in the red area, and we don’t see any sign of recovery this year. Sales in the first quarter were around 45% below the average levels in the five years prior to the start of the financial crisis. This reflects the fact that the country’s economy is now thought to have fallen into a prolonged and painful recession that will stretch throughout 2012,” according to Mircea.
Also, commercial vehicle sales in Europe, an important economic indicator are in the red area – “We have 12 percent fewer sales in May compared to May 2011. That’s huge – it’s a double digit loss,” Mircea said.
“New car registrations are expected to decrease by about 6 to 8 percent this year.”
The outlook from inautonews.com, which comprises virtually all major car and truck makers in Europe, for new-car registrations, which mirror sales, is worse than the decline of about 5% anticipated by many European car makers.
If new-car sales fall in 2012 it would be the fifth consecutive year that the market for new cars in Europe has shrunk.
Europe is an important source of revenue for the global car industry, but many automakers are struggling to operate profitably in Europe as the sector is squeezed by around 20% overcapacity.
Unlike in North America, automakers in Europe refrained from large-scale cutbacks during the last industry downturn in 2009, partly due to political resistance.
Inautonews is currently being quoted by some of the largest press agencies in the world and automakers like Volkswagen Ag, Nissan and Toyota.
Learn more about inautonews at www.inautonews.com.
- Contact Information
- Mircea Z
- Editor In Chief
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.