In a sign that the European automobile market may finally be recovering, new car registrations in September were up 5.5% from the year before. Sales in the UK and an extra sales day in the month were factors but industry analysts say that things have finally bottomed out in Europe. Year to date sales were still down, -4% to 9.34 million cars, still on track to be the worst year in two decades.
After the longest European recession since the adoption of the euro currency ended with GDP growth in the second quarter of this year, demand has increased but when car sales were down in August, there was concern. With September sales up, industry watchers now think the August decline was just a blip. (Read More…)
Automotive News [sub] brings glad tidings for auto execs drunk on Clunkers: “September’s light-vehicle sales rate will fall to 8.8 million units, consumer auto site Edmunds.com said. That would be the lowest rate in nearly 28 years, tying the worst demand on record.” Well, I did predict an 8m seasonally-adjusted annual sales (SAAR) rate. But did they listen? Noooooo. “They” had to spend $3 billion of taxpayers’ money on a cash infusion that did nothing—zip—to improve the industry’s long term well being. Or even longer. In fact, what’s the bet that the news (which hits for real on October 1) will trigger MORE federal spending on the ailing American automakers? You ain’t seen nothing yet. “Many people regard February as the darkest month of the recession, but even then the SAAR was higher, at 9.1 million units,” Edmunds.com senior statistician Zhenwei Zhou said in a statement. Expect to hear more apocalyptic pronouncements at an MSM outlet near you soon.