It is hard to recover from all aspects of the European automobile market.

Due to the intensified risk of the secession of the euro area and the renewed earthquake in Italy, the European economy, which has been stricken by all sides, is currently difficult to recover, or it will cause the European auto market to further slump.



“Wages have long been cut, and now it is useless to worry about it, so come here to enjoy the sun on the beach. At least nature has given us affordable.” A Greek citizen sat down in a beach chair and spoke freely.

Beside him, more and more people are coming here by public transportation and enjoying the "free benefits" they can afford. As they drive and buy new cars, they gradually become a luxury. On June 17th, Greece will usher in a general election. However, the result seems to be no longer important. No matter which politician is elected, the Greek economy, or the European economy, is still shadowy.

Standard & Poor's predicts that in the coming months, Greece is more than one-third likely to withdraw from the euro zone. Some analysts pointed out that if Greece withdraws, it will first severely hit global trade, and secondly it will affect the financial industry. Banks will tighten their credit and the loss of wealth caused by falling share prices will slow consumers' spending. These are tantamount to worsening the downturn in the European car market.

According to the data, in Germany, which has the best economic conditions in Europe, the number of new passenger car registrations in May 2012 was 289,977, a decrease of 4.8% year-on-year. In response, Volk Lange, chairman of the German Motor Vehicle Manufacturers Association, said cautiously: “We forecast that the German new car sales this year will be approximately 3.2 million vehicles. The final result will depend on further improvement in the economic situation.” Market sales are even less likely than last year's 3.17 million.

Not only that, after sales fell by more than 20% in April, new car sales in Spain were 72,442 units in May, down 8.2% year-on-year. In the first five months of this year, new car sales in Spain totaled 332,811, a year-on-year decrease of 7.3%. In the May data released by the French Automobile Manufacturers Committee, the French PSA (Peugeot Citroen) Group's domestic sales were only 59,522 units, a sharp drop of nearly 30% year-on-year.

Although the new French president, Hollande, chose the Citroen DS5 as a driver and urged the people to buy domestic cars, it still did not make the domestic auto industry better. As a result, PSA Group and Renault had to place their hopes on the Chinese market, accelerate the construction of new engine factories in China, introduce more models and establish new joint ventures.

It is worth mentioning that in Italy, which experienced two earthquakes within a month, the three luxury sports cars such as Ferrari were forced to suspend production for several days due to casualties. Nearly 5,000 employees were affected.

At the same time, the latest news showed that new car sales in Italy continued to show double-digit declines in May, down 14.26% year-on-year. As Italian car sales have fallen for five consecutive years, Bernadette, chairman of the Italian Automobile Sales Association, pessimistically believes that by the end of the year, about 30% of dealers will face closure risks.

At present, Italy has a total of 2,250 car dealerships, absorbs about 1.2 million people, accounts for 40% of the total employment in the automotive industry, and contributes 11.4% of GDP. If the auto industry continues to slump, it will accelerate the economy of the country. turmoil.

Not only that, the issue of excess capacity in European cars, which has long been a secret, will also be fermented. Fiat Chrysler CEO Malchoney pointed out: "There is only one way to solve the problem of overcapacity in automobiles. It is to stop production."

To auto excess capacity, on the one hand, it is extremely lethal, because idle factories still need a lot of funds to maintain, not to mention that those who have not brought in profits will also receive salaries; on the other hand, auto oversupply, Will pull down the price of the product. Malchoney believes that excess capacity will force European car manufacturers to enter a "frenzy of discounts."

In the next few years, the European automobile market will be in an uproar. Therefore, “going east”, profit from the Chinese market is undoubtedly the wisest choice for all manufacturers.