A recent study shows that the European auto market won’t recover until the end of the decade.
According to business consultants AlixPartners and their latest Global Automotive Outlook, the European crisis, and implicitly high unemployment, will affect consumer’s confidence in the following years too. In Western Europe, demand for light commercial vehicles and new passenger cars will shrink with 1 million in 2013 to 13.5 million, down 3.3 million units sold in 2007, before the crisis.
“Industry sales are unlikely to reach 16 million units again before 2020,” the study says.
In Europe new car sales have reached the level of 1994, with Spain’s sales in July down 17%, Italy down 21% and France 7%. Even Germany, where sales have not been affected so much by the European crisis, saw its new car sales down 5% in July, with Mercedes recording a fall of 14.6%, BMW 17.9% and Volkswagen 1.5%.
This means that Alix Partners’ prediction that the recession of 2008/2009 will return, might come true. Automakers that rely mainly on the European market have already reported massive losses, PSA Peugeot Citroën lost €819 million in the first half of the year.