The European car market isn’t doing well in comparison to carmakers that focus Globally and this was highlighted at the Paris Biennial Motor Show (Mondial De L’Automobile)
There has been a massive 7.1% drop in car sales in Europe so far this year, not to mention some Southern European markets seeing sales drop by as much as a fifth.
Ian Robertson of BMW’s management board told BBC news that ‘there are a lot of challenges’, later explaining that the South has always been a challenge in this market and they don’t expect to see any changes any time soon.
In agreement, Chief operating officer of Hyundai in Europe, Alan Rushforth also told BBC News:
“It’s going to get a bit tougher, actually, in terms of the economic backdrop and consumer confidence,”
Appearing hard to escape, no carmaker has made a fantastic flee from the European downturn, however the pain has not spread worldwide. Premium carmakers such as BMW, and budget manufacturers like Hyundai are doing pretty well in difference to their challenging assessments of the market.
The Society of Motor Manufacturers and Traders (SMMT) had this to say:
“I would draw the differentiation between businesses that are focused on Europe, and those with exposure to international markets where there’s growth,”
“Businesses that are mainly focused on Europe are clearly having a more difficult time.”
In comparison French manufacturers such as Renault Peugeot Citroen as well as Ford Europe, Vauxhall and Fiat are having a tough time right now. Massive drops in sales, market shares and over all profits have the companies worried for their future plans. This becomes apparent when Sergio Marchionne, chief executive of Fiat Auto says:
“The European car market is a disaster,”
Then follows up with:
“It has plunged off a precipice that doesn’t seem to have bottomed out yet. The prospects are anything but rosy,”