EU automakers worry about demand

EU autos Jun11.pngThe two-tier market for autos in Europe is worrying manufacturers.

As the chart shows, May’s sales (red square) were well down on the 2005-9 period, and only 7% above 2010’s very weak number.

They are a continuation of recent trends, where demand continues to be sustained by a few key countries:

• Germany, France and the Netherlands remain strong
• The UK, Italy and Spain remain weak

ACEA (European Auto Manufacturers Association) note that overall sales this year are 1% below 2010. Equally, only two months (February, May) have seen higher sales versus the previous year since March 2010.

May might be the start of a more positive trend. But it is more likely that consumers were simply buying forward ahead of price rises, as supply problems ex-Japan continued to grow.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

, ,

Leave a Reply