European car market forecast: next year or will continue to slump


The technical advantages of European cars have made it important for the global market to be "involved with the whole body."

While the European Union’s auto registration volume is growing again in October of this year, the European Central Bank recently warned that the current “cash for used cars” scheme currently being implemented in the countries of the Eurozone will not bring long-term economic benefits to it, and may even lead to next year. Car sales in the euro area have contracted significantly.

Currently, 11 members of the Euro Zone's 16 countries have or plan to use the above-mentioned redemption plan, which generally includes the provision of cash subsidies for the purchase of new cars or greener vehicles for consumers who sell used cars.

The European Central Bank believes that although the plan has had a positive effect on the euro zone's auto industry this year, it may affect the free market economy's efficiency, delay the necessary structural adjustment, and have a long-term negative impact on the industry's overall income and employment expectations.

Trend is pessimistic

Stimulated by the "cash for used cars" plan, the number of new car registrations in Europe rose sharply again in September. The European Central Bank issued this report in this context. According to data released by the European Automobile Manufacturers Association, new car registrations in Europe jumped 6.3% in September from the beginning of September last year.

The ECB’s report did not comment on the “cash for used cars” program in the United States. The European Central Bank report concludes that although the cash-for-money exchange plan for old cars in the euro zone has provided significant support to the euro zone's auto manufacturing industry in the first half of this year, its impact on the 2009 euro zone's annual industrial activity is expected to be limited, while the eurozone 2010 industry Activities are more likely to turn negative.

It is not only the European Central Bank that warns the European auto market next year. The latest European automotive market survey report also clearly pointed out that the prospects for the European car market in 2010 are still not optimistic, and new car sales will decline, but sales of small cars are expected to increase.

The report predicts that the new car market in Europe may continue to decline until the end of 2010. Among them, the sales of high-end cars will shrink significantly, while the small car market may be a bright spot for the entire automotive market.

According to the survey, about half of the automakers in Europe may experience a decline in sales next year. The sluggish market will force three-quarters of companies to cut spending, especially spending on research and development.

Ford Motor Europe’s sales data released this week also showed that the increase in new car registrations in Europe will not be sustainable. Ford pointed out that after the "cash for old cars" plan was withdrawn, Germany's new car sales orders fell by 20% in the first half of October.

Europe is the battleground

For the global market, the European market still has the position to “move the whole thing”. According to general estimates, in the global automotive landscape, the United States remains the world's largest consumer market after its recovery. China may be the largest market in the future, and Europe remains the most important brand and technology center.

"All car companies with international ambitions must be able to enter the U.S. market and must occupy an important position in the Chinese market. They must have technologies that can compete with Europe," comments the auto industry insider.

The technical impact of Europe on the U.S. market will also be of far-reaching significance. The Opel brand that GM has endeavored to retain, the new Carnival next-generation models that Ford is eyeing, and the Fiat part of the Chrysler revival plan all mean that small car technologies from Europe will put more energy into the US market.

According to the European Automobile Market Research Report, a series of corporate mergers and acquisitions may occur in the European automotive industry in the coming years. The report believes that despite the economic crisis, Germany will still occupy a leading position in the world's automobile production next year, while the automotive industry in Eastern Europe, especially the Czech Republic and Slovakia, will show stronger competitiveness.

Multi-party power game

Concerns about the economic recovery still persist, especially after the temporary effects of plans such as “cash for old cars” and rebuilding of inventory have disappeared. This makes stimulus policies and low interest rates more likely to continue.

The European Central Bank made a conservative currency strategy without optimistic expectations. Axel Weber, member of the European Central Bank (ECB) Governing Council and president of the German Bundesbank, recently stated that the European Central Bank will soon announce its exit from expansionary monetary policy.

The Central Bank of Norway also announced the latest interest rate decision later. The market generally expects the bank to raise interest rates by 25 basis points. This will make Norway the third country in the world to raise interest rates after this round of international financial crisis, and it is also Europe. The first economy to tighten monetary policy.

“Whether the European auto market can continue to maintain a strong recovery and still face many challenges and uncertainties, it will take time before the crisis is fully resolved,” comments the auto industry insider. Prior to this, 11 of the 16 countries in the euro zone implemented a trade-in stimulus policy. Under this policy, the number of new cars registered in Europe in September increased by 6.3% year-on-year.

Although there are many obstacles, the incentive to prolong the policy of stimulating new car consumption is also very strong. According to a German survey, 90% of car dealers believe that car sales will decline significantly after the suspension of policies next year.

Some experts have warned that rashly canceling the policy of stimulating new car consumption may cause the retaliatory shrinkage of the auto market and even increase the unemployment rate. They argue that this policy can only be gradually eliminated, or it will bring great harm to automobile manufacturing and its upstream industries.



Elevator Accessories

Elevator Accessories ,Steel Elevator Part,Elevator Non-Standardized Part ,Steel Elevator Accessories

Ningbo Metal Sharing Supply Chain Management Co., Ltd , https://www.zenlesf.com