Courtesy of Mish.
European bulls lauding the message “the worst is behind” received another dose of reality today. Data shows German car sales plunge as Europe’s auto crisis deepens.
New car sales in Germany fell by more than 10 percent year-on-year in February, signaling the crisis for Europe’s auto makers is deepening as recession-hit consumers curb spending. New car sales in the region dropped to a 17-year low in 2012.
Speaking ahead of the industry meeting in Geneva, the sales chief of General Motors’ (GM.N) Opel brand said car sales for the whole of Europe might fall by as much as 10 percent this year.
Until recently, industry executives have been penciling in a decline of around 3-5 percent for Europe’s car market in 2013. The market shrank 7.8 percent last year.
Germany continues to outperform markets such as France and Italy, where car registrations tumbled 12 percent and 17 percent respectively in February. German car sales fell 2.9 percent in 2012, including a 16 percent drop in December.
Gee Who Coulda Thunk?
“Until recently, industry executives have been penciling in a decline of around 3-5 percent.”
Flashback, July 09, 2012: Global Collapse In Auto Sales Coming Up.
Employee of German Manufacturer Robert Bosch Responds
Hi Mish,
Love your blog. I’ve written before.
I work for Robert Bosch in Germany. We make diesel injectors for common rail systems (truck and passenger car).
Our sales forecasts are again down and there is a huge crunch now to save money to try to squeeze out a profit at the end of the year. Sales are down 10% to business plan so they are looking for every dime right now.
The retiring CEO (Franz Fehrenbach…a good man) wishes for a “black 0” at the end of the year. However, I doubt that will happen….
