The European crisis has eventually affected the German market as auto sales in the region are on the slide.
Analysts predict that despite an awful 2013, next year will bring a tentative end to the crisis, at least in the auto market. The slump has affected even the German luxury cars automakers, with Mercedes announcing it might have overestimated the 2013 profit target. VW, which is the main manufacturer in Europe accounting for 25% of the market share, sees profits coming under pressure as auto sales begin t dip in its biggest markets. As for BMW, although it stills reports increasing sales, those come from cheaper, less profitable models.
LMC Automotive says that last month auto sales in Germany dropped 17.1%, more than the 10% fall in Western Europe and dropped 12.9% during the first quarter. There nothing new regarding these news taking the economic outlook and the fact that more and more countries in the euro zone are struggling to survive the financial crisis.
“German car demand has deteriorated sharply,” said Citi Research analyst Harald Hendrikse in a report, “with the sales run-rate down from 3.4 million last May to below 2.7 million by March 2013. VW Group German car sales fell 12 percent in 2013’s first quarter.”