European car buyers show solidarity and join the worldwide buyers’ strike. November sales in the EU fell 26 percent to 932,500 units, Automobilwoche (sub) reports. That, people, makes the EU the world’s largest car market. And we aren’t even counting “light trucks” here. Western Europe sank 26 percent to 854,700 cars. For the year, Western Europe is down 8 percent. Biggest losers: Spain (-50 percent,) UK (-37 percent,) Italy (-30 percent.) Even the new EU countries, previously the only places where there was growth, are no longer immune. Except for Poland (+11 percent) und the Czech Republic (+2 percent,) sales are down everywhere. Rumania even imploded to the thumping tune of minus 53 percent. Car sales in the new EU countries are down 23 percent to 77.800 cars. Nobody is an island, even Central Europe ain’t.
As far as brands go, GM is the biggest percentage loser with -37.5 percent. They sold 76.383 units in November, their market share shrunk from 9.7% to 8,2%. Toyota lost a third of their sales, their market share is down to 4.7 percent from 5.2 percent. Ford gets a gold star. They lost only 19.6 percent and increased their market share from 9.5 percent to 10.3 percent. And it gets worse …
Luxury cars is definitely not the place to be. BMW lost 30.9 percent in sales, their market share is down to 5.4 percent from formerly 5.9 percent. Daimler is down 24.5 percent, their market share increased slightly from 5.7 to 5.8 percent. Volkswagen lost 17.4 percent with 213.196 units sold, but their market share in Europe rose to 22.9 percent from 20.5 in the month before.
Looking to the US, Europe can find solace in the fact that they are the biggest auto market in the world (if the statisticians would only start seeing it the same way.) Their drop in sales is much less than in the US. And if you drop a little less hard than the other guys, your share of the dwindling market rises. If you have a way with presenting your statistics, it doesn’t all have to be bad.
There might be a simple truth – people dont need that many (for their wallets simply to expensive products, e.g. means of transport) anymore – especially not in urban cities in Europe like Geneva, Paris or Vienna – or even in Hongkong, where public transport is effective, clean, cheap, safe and generally much faster from point to point then any car. Also in NY and many other cities in the US one can get along pretty well by public means
There is simply a oversupply in cars.
Nothing special.
Like there was with the introduction of the roller-pen and markers a oversupply in fountain pens and pencils- the result was not to bailout the fountain pens producers (Parker) or pencil mills (including the producers of pencil sharpener) but a natural downsizing of supply to demand and specializing.
Thats how nature and evolution works – the same like in free markets
Logically – that problem cannot be mended otherwise like by helping the car industry to produce even more unwanted products. Or to help to get folks who can never repay a credit to buy unneeded goods.
If you think it over, that would be outright perverse.
Also “personal status by what car one drives” is wearing of – at least within the upper class. In worst case – there are always and everywhere on the globe taxies available
People have in harsh times other, much more valuable, priorities then buying metal standing most of the time on a street-corner.
Spending money on education would be wise…
Interesting stats.
The majority of vehicles sold in Europe are sold as company vehicles designed as either perks for middle managers or working vehicles for people who travel/carry stuff around. With the downturn vehicles are just not being replaced when the lease ends or are being held on to for longer than normal. A company I know is planning to run their small cars used by engineers for 3-years instead of 2 and the directors will be keeping their 2007 models until 2011 at the earliest.
Typically a company car will be a mid-range car from the likes of Ford and GM or a lower spec BMW or Merc (318i or a C180). GM have a focus on company sales at this level so its not surprising they are suffering the most.
Private buyers are also hanging on to cars for much longer and as they last much better than before, jobs are inscure (as are pensions) why spend money on such a depreciating asset ?
Luxury cars started to suffer when fuel went so high despite the number of Diesel top spec models like 7-Series and S-Class. They, and top spec 4x4s, haven’t really come back from there and I can’t see company owners replacing their S-class at the same time as anouncing losses and job cuts for their workers.
Ford’s performance is interesting but I think that may be due to the number of new models – new Fester, facelifted Focus and the new Mondeo – whereas the GM models have all been round for a few years now. GM models are perceived as inferior though – you don’t lovingly polish a Vauxhall Astra, you stick it through the car wash at thr weekend and claim the cost back on expenses.
On the upside the local press is bursting with adverts for deals from car sellers at the moment – discounts of up to 20% or so depending on the model, finance deals, free servicing or longer warranties – possibly not worth it when the maker may not be around soon.
If GM do go Mamaries Skyward then there may be a rush to buy “bankrupt” stock. When Rover went down the creak there was a run on unsold models being sold cheap despite the legendary warranty problems of the K-series engines.
Local dealer to me used to sell Jaguars exclusively – obviously not a good make to be selling anyway. So their superb decision was to add Cadillac (used 18 month old BLS at £6K compared to £22K new anyone ?), Hummer and Chevrolet to their range. Good move.
@taxedandconfused: That “The majority of vehicles sold in Europe are sold as company vehicles” is mostly a UK aberration. It’s a tax optimization in the UK. In Germany, having a company car for personal use can be a drag. Rules are being changed in the UK as well.
When I first went to live in Spain in the early 1990s
very few people had new cars , most of the cars on the
road were from the seventies or before , towards the
end of the 90s it all changed to the point where to see
a car more than 10 years old is rare . Most cars were
bought on credit over 5 or so years , and the salaries
being much lower than say the UK or Germany eliminates
the ability to upgrade . So when things get a little
strained, as of late , demand falls dramatically , and
I am surprised it is only 50% , I think next year will be
much worse in this market !
Here in Northern Italy it does seem to be a little
better , however it does seem that the only strength
in the market is in small cars , the Fiat 500 is very popular
along with the new Alfa Romeo Mito . The air is very
polluted here living as we do close to the southern side
of the Alps , and I think people are starting to get the
message that large cars are a unsustainable choice, that
and the fact that our gas price was hovering around the
$10 a gallon mark in the summer !
@Bertel Schmitt
Company cars are big business. They are taxed in the UK as additional pay and not “optimised”
Look at my user name and ask how I know ;-)