Car manufacturers and the iPhone generation

543 More

Earning the right to be successful

531 More

Knowledge is power

607 More

Selling cars – it’s all about timing

847 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

European car markets continue to be buoyed by scrappage incentives

Scrapping schemes continue to revitalise the European car market, which managed a fall of just 1.6 percent in 2009 sales, despite a slump sparked by the economic crisis.

Car sales rose strongly in France, Italy and Spain in January thanks to government scrapping incentives, but car makers will soon face the uncertainty of subsidies running out in some key markets.

Italian car sales rose 30.2 percent in January, while Fiat sales were up 30.4 percent, leaving it with a 32 percent market share, according to a Reuter’s calculation.

However new car orders fell 10 percent to around 125,000 vehicles in January, Italian foreign carmakers’ association UNRAE said.

French car sales rose 14 percent in January, car makers’ association the CCFA said on Monday and after being adjusted for the same number of working days, the rise was 19.7 percent. The comparative figure in 2009 was a 7.9 percent drop in sales compared with January 2008.

“The first half (of 2010) could be quite positive. As far as the second half is concerned, there is a big question mark — everything will depend on the recovery in economic activity,” said a spokesman for the CCFA.

Societe Generale analyst Eric-Alain Michelis said the January results in France were “not bad at all.”

The results were still reflecting orders placed in 2009 before the scrappage bonus offered in France was reduced, he said. “If the carmakers’ three-month order books are to be believed, this effect should last for the whole first quarter,” he said.

France’s largest carmaker PSA/Peugeot-Citroen saw January sales rise 17.9 percent, while Renault managed a 59.1 percent boost year-on-year.

Meanwhile, in Spain car sales rose 18.1 percent in January, but are expected to fall in the second half of 2010, as the government subsidies introduced in May evaporate and a VAT tax hike kicks in, Spanish car makers’ association ANFAC said on Monday.

“In the second half of the year sales will be negative, with falls of over 18 percent as a result of the 2 percentage point rise in VAT and an end to government subsidies,” ANFAC said in a statement.

Source: Automotive News

Feb 2, 2010MTI
  • Spanish car sales up 25 percent in December
  • German post-scrappage sales remain bouyant
  • Scrappage schemes boost European car sales by 6.3% in September
  • European governments urged to continue their scrappage schemes
  • June car sales in Spain and France boosted by scrappage
  • German car sales leap 21% helped by scrappage incentives
  • German new car registrations down 4.2 percent in JanuaryThe changing face of car brand loyalty in an economic downturn
    You Might Also Like
     
    Could an austere post scrappage world be too much for a fragile automotive industry
     
    Scrappage ups and downs, winners and losers
    MTI
    11 years ago Manufacturers, News, Scrappage20% vat, car makers, car sales, italy, Scrappage, scrappage 2nd phase64
    Most viewed
    Top 100 UK Dealer Groups
    38,662 views
    The car sales process and the “9 point plan”
    10,750 views
    webuyanycar review – They will buy any car but beware of the asterisk
    5,428 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes