Analysts expect auto sales in Europe to increase by 3% in 2014, due to increased consumer demand.
“We do expect a bit of a dead-cat bounce,” Goldman Sachs automotive analyst Patrick Archambault said.
Archambault added that the auto industry in Europe is expected to slightly revive in 2014, although currently sales levels are still under the European peak levels and will likely be flat in the near term beyond 2014. The analysts expects sales this year to drop 4% and sees September sales telling.
Currently, vehicle sales have reached a low in Spain, Italy and France, Germany continues to get worse, but the UK market continues to increase. Europe represents an important market for car makers and they need a sales rebound as soon as possible. Daimler and Ford expect to reach the bottom by the end of this year, while Renault is not that optimistic.
“We’re not predicting any upturn yet, but there are certainly some good indications,” Ford of Europe CEO Stephen Odell said last month. “Our prediction would be that we’re at or close to be trough.”
From what it seems analysts’ predictions regarding the future of the European auto industry divided into those who expect a grim future and those at HIS Automotive and Morgan Stanley who foresee a slow but steady recovery beginning with 2014.
Source: The Detroit News
by Ana Cezara Savin
) - Friday, September 20th, 2013 - filed under Industry
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