Opel warn on slowing demand in Europe image

After Scania, now General Motors’ European arm – Opel warns about a possible decrease of new car sales in Europe next year.

Last time, Scania AB, the Swedish automotive industry manufacturer of commercial vehicles said it saw demand slow in September, especially in southern Europe and the Mediterranean countries of the Middle East.

The actual euro crisis confuse many consumers said Opel boss Karl-Friedrich Stracke on Wednesday night at the Congress of Automotive Week in Berlin.

“We expect that the automobile market in Europe will experience a painful cooling, and we expect a significant shrinking of the market” the CEO said in an interview with Automobilwoche.

Automakers have been enjoying stable and healthy sales in October in emerging markets but are worried about the outlook for European continent, where governments are struggling with sovereign debt woes and austerity measures are biting into consumer spending power.

“We in the automobile industry are especially affected by this.”

Peugeot is the first automaker who said it would cut 6,000 jobs and warned that its profit would fall short of expectations, hurt by what it said was a “challenging” environment in Europe.

It said the job cuts would save 800m euros in 2012.

The European Union is the world’s largest producer of motor vehicles, producing over 18 million vehicles a year – a third of the world’s passenger cars.

More than two million people work directly for this sector and twelve million indirectly.