Nikkei Sees "Sharp Slowdown" In Global Car Production. They Need Glasses
Last year, world car production had jumped 26 percent to 77.8 million units, as it recovered from a carmageddon-induced slump. This year, global car output will see a “sharp slowdown,” if The Nikkei [sub] is to be believed. The Tokyo business paper cites IHS and J.D.Power, both expect only 4 percent growth. The Nikkei however should do some chart studies before writing.
As the graph above shows, that growth rate is not a sharp slowdown, is simply is a return to normalcy. Last year’s 26 percent jump was the counter-reaction to a 12.4 percent slump in 2009. From 1998 to 2007, the global car market expanded at an average rate of 3 percent per year – in a more or less linear fashion. Pre-carmageddon, the rolling 3 year average was a little above 4 percent annual growth. The worldwide market is simply getting back into its old pace.
The cars lost during carmageddon however appear to be lost for good.
What I am seeing is a sharp slowdown in my trust in major wire services.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Just wait until the next shoe drops in the financial markets.
Glasses of what? All levity aside, I too have an unsettling feeling about the financial markets and their ability to continue to hurt the overall economy.
At the risk of making a pointless rebuttal of a pointless rebuttal, it is pretty apparent to a reader that the Nikkei is saying the RATE OF GROWTH is slowing RELATIVE TO LAST YEAR. Nobody informed would think they are saying production units are declining, or that production growth is declining relative to the historical norm you quote of 4 percent. Or am I nuts?