Western Europe: Vehicle markets stabilize as economic conditions steady

Slow but steady growth seen ahead; More restructuring expected

2013/10/10

Summary

Western Europe Car Sales Forecast
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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