The crisis in economic policy continues in Europe with governments pursuing contraction instead of expansion. Automakers still have not restructured to reflect actual demand.
New car registrations were down by 9.7% in the EU, compared to February 2011 at 888,878 vehicles, ACEA reported today. During the first two months of 2012, sales of 1,858,066 new cars declined 8.3% compared to the same period a year earlier, the automaker’s trade group reported.
Demand for new cars in February decreased in all major markets, except Germany where registrations were flat. Spain (-2.1%), the UK (-2.5%), Italy (-18.9%) and France (-20.2%) all saw their markets shrink.
The dismal sales data, which has potential implications for the U.S. presidential election since all the Detroit Three companies are mired in losses from their European operations and previous taxpayer assistance remains controversial, confirmed what ACEA President Sergio Marchionne, the CEO of Fiat S.p.A. said two weeks ago.
“EU must counter economic headwind with a strong industrial policy," said Marchionne.
In terms of auto sales in Europe, the “most optimistic forecast” is that new vehicle registrations in Europe will be flat through 2014. “The fact is that, today, very few manufacturers make money in Europe”, said Marchionne.
General Motors and Fiat, the owner of Chrysler, posted declines in share, as well as vehicle sales in excess of the overall market decline ytd, with sales off to 144,358 vehicles or -14%, and 132,954 vehicles or -16% respectively. Both are losing money in Europe, of course, well documented by AutoInformed. Ford, also losing money in Europe, is flat in share at 7% and slightly out performing the market with sales of 14,046 ytd, off 5%.
Market leader Volkswagen Group remains the star performer, increasing share to 23.8% year-to-date, with sales of 446,315 vehicles, off 1%. In second, PSA Group lost one percentage point in share ytd, at 12.8% with sales of 237,175, down 16%. In third, Renault Group lost almost two percentage points of share with sales of 165,333 in the same period, a 24% drop. Ford is in fourth place, followed closely by GM in fifth and then Fiat.
