GM, Ford and Fiat – the owner of Chrysler – are all losing billions in Western Europe with no end in sight.
The last month of 2012 saw light vehicle sales in Western Europe decline by -16% to a SAAR – or Seasonally Adjusted Annualized Rate – of just 11.7 million vehicles as the Eurozone crisis deepens. The market dropped more than -8% for the year, taking it back to levels not seen since 1993. Sales in 2012 are more than 3 million units off or -21%, compared to the size of the 2007 market.
Virtually all the major economies suffered from the contraction. The German market fell to a low 2.7 million SAAR in December, taking its full-year market to 3 million units. France saw sales decrease -13.9% for the year at 1.9 million. Italy finished off the year with a market of 1.4 million units, more than 1 million vehicles lower than pre-Great Recession 2007. While the Spanish market had a scrappage incentive program, it failed to create any real boost in the selling rate with the market down to just 700,000 units for the full year.
Only the UK went against the trend, with the car market up for the full year at 2 million units, the highest since 2008.
It’s been decades since the market was this bad.
The consultancy LMC Automotive says that the economies in the region during 2013 are expected remain “subdued,” with some contracting, and others seeing only mild expansion. Combined with little positive news in the recent market selling rates, LMC points to another difficult year in 2013 for the struggling auto industry, with about a -3% market volume fall forecast for Western Europe.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
