The European car market keeps dropping month after month to levels last seen nearly 20 years ago. The distrust in the future and in the austerity policies wreak havoc in the car markets, specially in the Mediterranean countries that are more harassed by the recessionary measures implemented, and the month of October is no exception.
Industry data published today showed that French vehicle registrations fell 7,8 percent to 162.411 registered vehicles last month, in Spain registrations dropped by 21,7 percent to 44.873, but the German market saw a 0,5 percent rise in sales that is easily explained with the two extra working days recorded. If we had accounted for the last two months Germany had a decline of 5,4 percent.
"Currently there is no early indicator or other hard data pointing to an improvement in the next few months," said Ulrich Winzen, chief forecaster in Germany for auto industry consultant R.L. Polk.
It is expected the number of cars sold this year won't pass the 12 million mark, which is a record low since 1986, with the exception of 1993. Winzen still seems to be optimist saying that "Economists tend to underestimate not only recessions but also recoveries, and if we no longer wake up wondering what terrible news about the euro zone awaits us, then there is significant pent-up demand just waiting to be released once things quiet down".
Source: Autonews