German auto lobby says Grexit might be the proverbial necessary evil image

According to Germany’s auto industry lobby group, the approaching Greek exit from the euro zone might actually bring stability and be necessary despite its potential negative impact on Europe’s feeble new car sales recovery.

Automakers have already started making contingency plans and monitor intensively the probable effects on capital markets and exchange rates following a potential Greek exit from the European single currency – the so-called Grexit. BMW even gave a statement in which it showed its support a political solution that has the least amount of impact on the European conditions of the capital markets. Matthias Wissmann, the leader of the German VDA automotive industry association believes a Grexit should not be considered a taboo and once fulfilled it would bring a new level of stability for the euro zone. “The EU countries that had the courage to undertake unpopular reforms had to go down a path that was hard and rocky, but it paid off and today they are once again on course for growth,” commented the executive.

European auto sales soared 1.4 percent to 1.15 million units in May, show figures compiled by European auto industry group ACEA. This was the slowest rise since November 2014, with consumer woes about regional unemployment and the impact of the Greek debt crisis took a heavy toll. After the Greek government skipped a 1.5 billion euro ($1.7 billion) debt repayment to the International Monetary Fund, taking the country closer to an exit from the euro area, new car sales have come to a halt. Just as in the Greek economy overall, everything has come to a standstill,” commented a BMW group spokesperson.

Via Automotive News Europe