West Europe Car Sales Down 15.5% in October
According to data released by JD Power Automotive Forecasting, the steep decline in new-car sales in Western Europe could be even worse than a slump in the early 1990s.
"The speed and severity of the market decline is now comparable to, perhaps even greater than that which took place during the recession of the early 1990s," J.D. Power said in a statement.
J.D. Power said that the West European car market declined sharply by 15.5 percent to 1,035,243 million units in October compared to a year earlier.
The forecaster predicts a decline of between 10 percent and 11 percent for the car market in Western Europe next year after an expected 8 percent fall in 2008. That will place major strains on the European auto industry.
The fall in demand is based firmly on the darkening economic environment with further impact being felt from expensive financing and the hammer blow that was dealt to consumer confidence resulting from the financial market crisis.
JD Power also noted that dealing with this sharply reduced level of demand through 2009 'will place major strains on the European car-making industry'.
Sales in France are also now weakening after only mild declines earlier. French sales fell 7.3 percent to 175,014 units last month.
The UK market continued to fall sharply with October sales down 23 percent to 128,352 units.
Spanish and Italian car sales reported large year-on-year falls. However, there are signs that a bottom may be forming in both countries, though a weak 2009 performance still appears likely.
Spain's October sales were down 40 percent to 77,660 units and Italian sales dropped 19.8 percent to 167,940 units.
J.D. Power also predicts a 5 percent decline for 2009 in France and Germany and a double-digit decline in UK sales.
Government-sponsored incentive schemes planned in some countries will only provide a small boost to sales, the forecaster said.
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