Renault Nissan chief executive officer Carlos Ghosn has opted to lift his European car market expectations because the European Central Bank has embarked on a bond acquisition strategy devised to buoy the lagging economy of the region.
According to a company spokesperson, speaking to attendees of the Davos World Economic Forum, Ghosn modified his previous forecast for the continent from a one to two percent growth for the year to at least 2 percent. Last week, on Thursday, the European Central Bank unveiled a government bond-purchase plan designed to introduce hundreds of billions of newly printed money into the eurozone. The European region has been hit by a six-year slump that ended last year, though not until two-decade low figures were achieved. The feeble rejuvenation of the region was undermined by numerous economic and political uncertainties, with Russia sliding into a deep sales coma and Germany – the continent’s largest market – posting conflicting results almost on a monthly basis.
In 2014, European new car registrations in the EU and EFTA zones rose 5 percent to 13 million vehicles. For 2015, though, most of the executives and analysts predict a slowing sales increase, of no more than 3 percent in the best-case scenario. IHS Automotive is one of the supporters of the latter outcome, though commenting that Europe will not revert to pre-recession figures until 2020.
Via Automotive News Europe