Auto sales in Europe have collapsed

Discussion in 'Economy' started by Nova78, Jul 16, 2012.

  1. Nova78
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    Nova78 Silver Member

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    As European car sales are falling due to the debt crisis. GM's money losing European division that also owns German carmaker Opel. Together, Opel and Vauxhall lost $562 million in 2011, according to the Telegraph. If they continue, those kind of losses could eat up all the gains GM has made in the U.S. and Chinese markets. The losses will definitely sink the company's stock at some point. Ford said sales fell 10% from Jan. through June in Western European markets, and they worsened in June, falling 16% from a year earlier. Ford's (NYSE:F)report confirms analyst forecasts that Europe will continue to be a drain on U.S. companies' profits as the European debt crisis drags on and the global economy weakens. Ford earlier warned that Q2 profit will be lower than a year ago. It reports July 25. Shares rose 1.5% to 9.27.

    Fiat sees Europe car sales down for fifth year
    Car Sales in Europe Down to 14-Year Low
    Blame overextended credit or the lack of radical, decisive action, but one thing is for sure - Europe’s economy is in the middle of a major slowdown, and the battle is long and drawn-out. This has affected new car sales in a major way, and last month demand dropped to a 14-year low.Fiat, Renault and PSA Peugeot Citroen posted the biggest drops. What’s more, backbone countries like France and Italy, the second and third biggest markets for cars, both saw a 20 percent drop in demand.

    Meanwhile, car sales in France dropped 23 percent to 197,774 vehicles, while Italian registrations dropped 27 percent to 138,137, according to Bloomberg News.

    Not a good to time to own car stocks

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