Renault Nissan’s Ghosn predicts better than expected European sales image

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