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The Rising Red Numbers of the European Car Sales Indicators |
8 August 2012by Stanislava Pavľáková, JTW
Frankfurt am Main, August 2, 2012 – The German Association of International Motor Vehicle Manufacturers (VDIK) announced in conformity with its estimate data that the strongest European car market recorded a striking slowdown in July. The sales of new passenger vehicles fell by five percent. In terms of numbers this means a loss of about 248 thousand vehicles. The total cumulative quantity of the new car sales in the first seven months in 2012 is about 1.88 million; it is comparable to the same period of the previous year.
The trend of the regression of vehicle demand also occurred in other European countries, namely in France where the sales declined by seven percent, and in Spain where they fell by more than seventeen percent.
VDIK President Volker Lange stated: "The car market can only become more stable if we come closer to a solution for the financial crisis in Europe and the confidence of the public in their government and the economy strengthens."
Due to the economic downturn and slumping car sales trends on the European continent, many automobile plants are considering suspending or already have suspended discussions on initiating crucial projects that demand investment.
On the other side of the coin, these sales slowdowns for five years in a row may and probably will create cuts in the about half-a-million-strong labor force of the automobile industry. More or less, they will be prejudiced against temporary agency workers with already low incomes. Automakers, namely PSA Peugeot Citroen and Fiat, are in favor of such cost-saving measures in seeking the end of the period of loss. French Peugeot, the second largest European carmaker, has announced the grandest layoffs. Peugeot cancelled more than 14,000 jobs and is considering closing a manufacturing plant in the suburbs of Paris.
Since 2007, more than 800,000 jobs in the EU automobile industry vanished. Consequently, this is one of the central factors behind the record high June 2012 unemployment rate of 11.2 percent within the euro area. |
8 August 2012
Journal of Turkish Weekly
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