EU auto sales down 10% in September

EU autos Oct10.pngEU auto sales were better in September than in either July or August. But ‘better’, of course, is a relative word these days.

As the chart shows, they were only down 10% versus 2009 levels, whereas July and August were down 19% and 13% respectively. But in terms of absolute volume, sales at 1.2m were well short of the average September figure of 1.4m between 2003-7.

The figures also confirm that the earlier ‘cash for clunkers’ programmes were a complete waste of money. As in the USA, these only brought forward sales, and didn’t create sustainable new demand. Thus ACEA (European Automobile Association) report that in September, “all major markets contracted, by 8% in France, 9% in the UK, 18% in Germany, 19% in Italy and 27% in Spain“.

Now, austerity programmes are replacing stimulus. And with major markets such as France in the middle of major strike actions, it seems likely that Q4 demand trends will continue to weaken.

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.

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One Response to EU auto sales down 10% in September

  1. Pierpaolo Ferluga 20 October, 2010 at 8:35 am #

    I absolutely agree.
    a clear warning signal.
    what about new China interest rate??
    it looks like China and USA are playing at 2 different tables….
    who will be the winner??


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