As predicted a month ago, European car sales continued their cautious turn-around in July. Eastern Europe is still down (but on the mend), Western Europe, clocked in with a growth of five percent compared to July 2008. Europe as a whole was up 3 percent in July. Here are the highlights:
Western Europe books its five percent plus mostly due the Abwrackprämien-powered German sales. In July, Germany was still on its ballistic trajectory, with an increase of 29.5 percent. Without the German booster rocket, Western Europe would have booked a slight decrease of two percent.
France: up 3 percent; Italy: up 6 percent; and UK books its first increase since April 2008 at 2 percent. Even moribund Spain is slowly coming around: sales dropped only 11 percent after having been pulverized in the months before.
Eastern Europe seems to have bottomed at -21 percent. Slovakia grew 39 percent, Czech Republic 9 percent, and Poland 5 percent. All other Eastern European markets registered double digit losses, Das Autohaus reports.
The Russian market, which was supposed to be the market of the future, is still going to hell in the proverbial hand basket: Down 58 percent in July. Russia now plans their own version of rubles for clunkers. 50,000 rubles (approximately $1600) are scheduled to be handed out to Russians who let go of their lame Lada and buy a new car. Must be Made in Rossiya-Matushka, or Mother Russia to qualify. Expect a WTO complaint.
Usually, these numbers come from the Association des Constructeurs Européens d’Automobiles (ACEA), commonly known as the European Automobile Manufacturers’ Association. However, nos amis at the ACEA took a whole month off. The counting was therefore left to the German Verband der Automobilindustrie (VDA). Expect slight revisions of the data when the ACEA publishes their July & August data on September 15.
Russia isn’t a WTO member
And Russia are very much trying to fudge their WTO membership. Whilst they appear to be playing ball with the WTO membership process, the man with the hand inside the presidential puppet’s umm, glove compartment, Mr. I-Like-Riding-bare-backer-horses-half-naked-Putin, is suggesting Russi joins WTO as part of a customs union with Kazakhstan and Uzbekistan. Which is impossible. And to which the two -stan’s both said “Huh?! News to us!”.
Putin wants to play fast and loose with trade rules. He likes the ones he writes himself as they can be updated whenever it is convenient. International accountability is not what he is seeking. The Russian auto-industry is breathing it’s last gasps of air and is desperate for rescue by a heroic figure (maybe one who arrives on horseback, stripped to the waist)??!