The car sector cannot solve its Europe problem, and that will swamp sales and earnings for a long time to come.
Douglas A. Mcintyre -
247WALLST - May 16, 2012
The European Automobile Manufacturers Association (ACEA) announced that April sales of cars and light trucks in the region were 6.9% less than in the same month of 2011. That means only 1,017,912 new passenger cars were registered in the European Union during the month.
As might be expected, based on the great disparity of GDP growth or contraction, sales in Germany rose 2.9%, while sales in Spain and Greece fell 21.7% and 18.0%, respectively. Regardless of how the numbers break out by nation, the market in the area is in such deep trouble that regional manufacturing results have been crushed and will continue to be. EU results for multinational car companies are and will be poor enough to offset most success in the United States or China. The car sector cannot solve its Europe problem, and that will swamp sales and earnings for a long time to come. All that remains to figure is what each manufacturer will do to try to offset the problem....
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