Western Europe: Vehicle markets stabilize as economic conditions steady
Slow but steady growth seen ahead; More restructuring expected
Source: LMC Automotive Global Car
and Truck Forecast, September 2013
The Western European automobile market is showing signs that unit sales have finally reached bottom. Gradual growth is anticipated over the next few years as general economic conditions are expected to improve. Top executives from several automotive OEMs have also expressed optimism that the Western European market has stabilized. Many companies have reacted by announcing model updates or new introductions in the next few years. Meanwhile, excess capacity is still a problem in the region as some companies are undergoing extensive restructuring to bring it in line with demand.
LMC Automotive also sees modest potential for growth for cars in the near- and mid-term. The company states, "However, the West European car market (at 11.4 million units) is likely to finish 2013 nearly 3.5 million units lower than 2007 with only a modest improvement likely in 2014." The decline in 2013 equates to a (3.2%)decrease from 2012 results. 2014 is expected to venture into positive territory with a slight growth of just over 1%.
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[IAA, Frankfurt Auto Show 2013 (2): European & Asian OEMs, October 2013]
[European OEMs: Germans set sights on new sales record, September 2013]
[VW boosts production in key markets in North America and China, August 2013]
[PSA looks to break its dependence on Europe by expanding into emerging markets, July 2013]
[FIAT lays out strategy to break-even in Europe by 2016, June 2013]
[European OEMs prepare aggressive EV/HV launches, May 2013]
[Renault strives for positive operating margin for the automotive division, May 2013]
[European OEM strategy: cost reduction and expansion beyond the EU, April 2013]