In this time of extreme economic uncertainty, it is not overly surprising to report that new car sales have dropped. However, it is when the actual figures are released and comparisons are drawn that the reality of the biggest fall in car sales in nine years, really carries some weight.
A fall in November 2008 was also the seventh consecutive monthly fall with European car sales over all dropping by 25.8%, with Ireland being the worst hit falling 55.9%. As a result many vehicle manufacturers have of course cut output to cope with the drop in sales and the most recent manufacturers to announce a temporary halt are Seat and Volvo.
The decline in new cars on the roads around the world can also be seen in the drops in registrations which were down 26% in Western Europe compared to the same time last year. This equates to a total of only 854,698 new vehicles, or around one million fewer cars registered since January of last year.
The sales drops seen by the major European manufacturers include a 17.4% drop experienced by Germany’s Volkswagen, a 26.9% drop for France’s Peugeot Citroen, a drop of 21.8% by Renault and 23.8% for Fiat. Seat have also said that the first half of this year will see them cut production further again, at their main plant in Catalonia in response to the decreased demand.
Many governments are rushing to support their flailing car industries to help keep their local production plants going, to avoid the need to send production of their vehicles offshore. There are also moves being planned to help manufacturers sell the stock they already have filling their showrooms.
Perhaps the focus would be better shifted to target those who can still afford luxury cars like Fiats, Peugeots and Renaults, as not everyone has been affected negatively by the current financial situation. Those individuals and business with access to ready cash for themselves and their own operations are in the unique position to take advantage of falling prices and rising opportunities which those without the cash on hand must pass by.