25 March 2013 17:25 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--European tyre makers said on Monday they see auto and tyre sales remaining sluggish in Europe for the rest of the year, partially due to the relatively young age of European cars.
Speaking on the sidelines of the International Petrochemical Conference (IPC), one tyre maker said that cars in Europe are only about 7 years old, relatively new by industry standards.
“Just as in the US, Europe had subsidies for auto sales from 2009 to 2011,” the source said. “Those have run out, so that’s impacting auto sales.”
For tyre makers, this means that sales will remain weak. Fewer people will be buying new cars, and the sluggish economy means consumers will delay purchases of replacement tyres.
“That business [replacement tyres] is really in trouble,” said another tyre source. “People are worried about the economy, how long it’s going to be bad, and therefore they are stretching tyre wear as far as they can.”
Tyre makers said they expect European full-year auto sales to be down about 10% compared with a year ago, the same figure the industry reported in February.
The American Chemistry Council (ACC) estimates that each automobile contains an average of $3,297 (€2,539) worth of chemicals, such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.
($1 = €0.77)
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