European Car Expected To Decline

Autoparts Report, Feb 23, 2001

Car sales in Europe are skidding, and sales could drop by more than one million by the end of 2002, according to the European Car Manufacturers' Association. Analyst expectations had been that Europe would escape the downturn already hitting the U.S. car industry, but the latest reports suggest dwindling consumer confidence based on a slowing U.S. economy is spreading.

According to a report from Automotive intelligence company Autopolis, European car sales will dive 5.5 percent in 2001 to 13.9 million, and another 3.5 percent in 2002 to 13.4 million. This compares with last year's European sales of 14.7 million and the previous year's record 15.1 million, according to Association.

Autopolis said that the European economy was relatively robust and it still expected most car manufacturers, whose sales have been historically high, to escape the worst. However, it said German giant DaimlerChrysler and Italy's Fiat SpA were most at risk, although it did not give detailed explanation as to why.