European car sales slump down -9.5%

[Ford Jellymoulds]

European car sales all brands slumped 9.5% in March as the US financial downturn hits the shores of Europe, but two days of car production were lost in March due to the Easter holiday being moved into March this year so Aprils figures should be better?

 

Toyota sales had one of the biggest falls down -17.8% and look like they could disappear from Europe soon they won't be missed, Land Rovers also had a bad month down 21.7% T-Stag will be along soon to put some spin on it all, maybe they had an outbreak of nits or dandruff at the Land Rover plant and it caused the big drop off in sales, no doubt T-Stang will come up with some feeble excuse.

 

I now believe the uncertain financial state of Europe is starting to have a negative impact on sales here now, Mini +21% & Smart +102% sales are holding up well as everybody seems to be downsizing due to the downturn, big cars may come back in vogue once the economy starts to move on an upward trend again.

 

Ford Group dropped 11.2%

 

Ford -9.9%

Volvo -15.3%

Land Rover -21.7%

Jaguar -2.8%

 

European car sale numbers March 2008

http://www.acea.be/images/uploads/pr/20080...-0803-Final.pdf

Edited April 15, 2008 by Ford Jellymoulds

[Edstock]

Now it seems that real estate prices all over Europe are taking a hit.

 

http://www.nytimes.com/2008/04/14/business...&ei=5087%0A

 

The point is, a European recession might be a while recovering.

[Ford Jellymoulds]

Now it seems that real estate prices all over Europe are taking a hit.

 

http://www.nytimes.com/2008/04/14/business...&ei=5087%0A

 

The point is, a European recession might be a while recovering.

Yes l am no expert Ed, but everybody say it's going to hit us harder and longer house prices are starting to fall but they are quite hardy & resilient, nobody wants to lend money anymore. Folk that are mortgage tarts that change mortgages every few years onto cheaper lower rates will be stuck in high variable rate morgages as lenders have pulled the plug on them. So they will have less cash to spend on bigger cars in future, and will be looking to downsize to something more fuel efficient.

http://www.cnbc.com/id/24108158/site/14081545

Edited April 15, 2008 by Ford Jellymoulds

[NickF1011]

I'm sure damn glad I got a 30-year fixed last year. :happy feet:

[timmm55]

I'm sure damn glad I got a 30-year fixed last year. :happy feet:

 

 

There should have been some government regulation when all those crazy variable rates with baloons came out. I was a real estate agent 1986-1991, don't we ever learn? Fixed rates were 5.75 or so, why would anyone get an adjustable? Variable rates made the housing market a house of cards. Now we are all paying for it.....but some people got rich in the short term.

[mackinaw]

Toyota sales had one of the biggest falls down -17.8% and look like they could disappear from Europe soon they won't be missed.....

 

You really expect Toyota, which will probably pass GM as the worlds' largest auto maker this year, to leave Europe? Europe, as a whole, is the world's biggest car/truck market at over 20 million vehicles/year (in comparison, the U.S. will be lucky to hit 15.5 million in 2008). Absolutely no way Toyota is going to walk away from a market that size.

[jpd80]

I wonder why Toyota are finding Europe such a tough nut to crack?

Perhaps Europeans demand much more from there products - Yaris/Corolla/Camry/Avensis falling of buyer expectations?

 

The real reason for Toyota's success in the USA is because Detroit let them walk away with the market by default!

When Ford GM and Chrysler just start building vehicles the market really wants, they'll reclaim their rankings and smash Toyota.

[silvrsvt]

? Fixed rates were 5.75 or so, why would anyone get an adjustable? Variable rates made the housing market a house of cards. Now we are all paying for it.....but some people got rich in the short term.

 

an ARM loan is great if your not planning on staying in house for long period of time and want to save some money, but the over speculation of the market really did them in.

 

In all seriousness, aren't we seeing the same people who drove up housing, now doing the same thing to the futures market in oil and even food?

[TStag]

I wonder why Toyota are finding Europe such a tough nut to crack?

Perhaps Europeans demand much more from there products - Yaris/Corolla/Camry/Avensis falling of buyer expectations?

 

The real reason for Toyota's success in the USA is because Detroit let them walk away with the market by default!

When Ford GM and Chrysler just start building vehicles the market really wants, they'll reclaim their rankings and smash Toyota.

 

Competition here is much fiercer. Peugeot and more recently Fiat have fought them hard, as have the Germans generally. Lexus can't get a look in as most people here will only by a Bmw, Merc, Audi, Land Rover, Jag or maybe Alfa/ Saab/ Volvo (as sub luxury brands). Lexus comes a long way down the list. It doesn't have the heritage.

 

In addition the domestics got a lot of backing (although we in Britain adopted Ford and GM) as domestics as they used to make a lo of cars here. Nowadays in the UK we increasingly look to other brands but in other counteries there is a strong inclination to buy European (or Ford/GM). Not because we want to buy European but because Japanese car have a reputation of being dull. Honda and Nissan are doing better nowadays but Toyota sucks. So Kia is also doing well. They are selling some good cars here now.

 

As for these figures then I'm not sure sure I quite follow them. MINI was claiming to be up nearer 45% and on a global basis Land Rover up 12% with Jag up too. So I'd be caucious on those figures. Suggest someone tries the SMMT for the UK numbers. I don't have excel on this PC otherwise I'd do it. But they will give you the UK figs which should be spot on.

 

Not surprised if sales do fall though we are getting dragged into a recession by the US sub prime fall out. Most of our banks lent money in the states too.

[Ford Jellymoulds]

Competition here is much fiercer. Peugeot and more recently Fiat have fought them hard, as have the Germans generally. Lexus can't get a look in as most people here will only by a Bmw, Merc, Audi, Land Rover, Jag or maybe Alfa/ Saab/ Volvo (as sub luxury brands). Lexus comes a long way down the list. It doesn't have the heritage.

 

In addition the domestics got a lot of backing (although we in Britain adopted Ford and GM) as domestics as they used to make a lo of cars here. Nowadays in the UK we increasingly look to other brands but in other counteries there is a strong inclination to buy European (or Ford/GM). Not because we want to buy European but because Japanese car have a reputation of being dull. Honda and Nissan are doing better nowadays but Toyota sucks. So Kia is also doing well. They are selling some good cars here now.

 

As for these figures then I'm not sure sure I quite follow them. MINI was claiming to be up nearer 45% and on a global basis Land Rover up 12% with Jag up too. So I'd be caucious on those figures. Suggest someone tries the SMMT for the UK numbers. I don't have excel on this PC otherwise I'd do it. But they will give you the UK figs which should be spot on.

 

Not surprised if sales do fall though we are getting dragged into a recession by the US sub prime fall out. Most of our banks lent money in the states too.

 

Good honest post T-Stag, FOE media posts always include Ford & J/LR Russia & Turkey sales where Ford are selling very well at the moment together with Transit van numbers added, which are not car sales for the EU which Jato and ACEA use and they don't focus on the way FOE or any other car makers organisation is constructed within Europe, and it's fair to say that Ford lose out the most if Russia joined the EU the Focus might be the best selling car but l don't how well the Pug 207, Golf & Astra sell in Russia and Turkey to know.

 

Had a look at SMMT website on UK sales thanks for that T-Stag, you are right everybody else seems to be taking sales away from Ford in the UK l can remember times when you used to get Cortina-Escort-Capri 1-2-3 in the UK with doulble sales of what sells now even though there was only half the number of cars on UK roads at the time.

 

Mondeo never makes the top 10 anymore in the UK, Cortina was always No1, l noticed even the Mini made it into top 10 this month l can't remember seeing that for a long time. French and Germans are selling more and more cars here year on year but the new Fiesta should reverse the trend.

 

I don't know what will become of Jaguar they push all the right buttons, top the quality charts - win lots of awards - make stunning cars what more can you do? I just think they cocked up bigtime with the X-Type like you say everybody refers to it as a Mondeo it's gotta be one of the biggest piss takes you hear in the UK, l bet every time somebody bought one they must have faced a big "It's a Mondeo" piss take everytime they parked outside wine bar. It's not hard to see why hard core Jag fans have deserted then for good for Mercedes & BMW never to return, how could you ever live with a Mondeo X-Type you just lost all your status even though it was a very good car.

Just interested why did those in charge Jaguar agree to the Mondeo X-Type? Jaguar looks like it has only a future in India as another Royal Enfield.

 

I remember you saying T-Stag the Chinese Nanjing new MG company were going to crush Ford, GM, & Toyota with their cheap MG cars.

What happened?

 

The project to revive production of the MG TF roadster at MG Rover's defunct Longbridge site is on the brink of collapse, according our sister site, autocar.co.uk. Supplier Stadco announced at the weekend that it was pulling out of a deal to make TF bodyshells for the Chinese carmaker Nanjing, some 18 months after signing a supply deal.

http://www.whatcar.co.uk/news-article.aspx?NA=232289

 

I hope the same thing won't happen to Indian Jaguar, Still l expect MG have just put conquering the world by storm on hold for now ah T-Stag?

[BigBadBflo]

I got a %4.6 15yr in 2004. I couldn't understand why people were taking the ARMs either. And all the low interest rates appeared to do at the time was allow people to over pay/bid for houses. If no one saw the market correction coming they had their blinders on.

[Ford Jellymoulds]

I wonder why Toyota are finding Europe such a tough nut to crack?

Perhaps Europeans demand much more from there products - Yaris/Corolla/Camry/Avensis falling of buyer expectations?

 

The real reason for Toyota's success in the USA is because Detroit let them walk away with the market by default!

When Ford GM and Chrysler just start building vehicles the market really wants, they'll reclaim their rankings and smash Toyota.

 

We don't need their expensive battery powered hybrids in Europe, Toyota don't want to get into diesels because it would harm Prius sales. Diesel is cheaper than gasoline in most countries within Europe (You would not think we live on the same planet, gasoline in cheaper in the States why?) you could afford to buy Landcruisers, Camrys, Lexus & Tundras, but filling them up with sky high fuel gasoline/diesel prices would mean that they would be only be in reach of lottery winners, their small car sales are knocked out of the game by small French/German diesel cars that are much more reliable & get double the mileage longevity from their small bombproof diesel engines, and Toyota come with boring as standard that is very off putting.

 

You are spot on JPD it can't be rocket science build what the market needs.

Edited April 16, 2008 by Ford Jellymoulds

[NickF1011]

I got a %4.6 15yr in 2004. I couldn't understand why people were taking the ARMs either. And all the low interest rates appeared to do at the time was allow people to over pay/bid for houses. If no one saw the market correction coming they had their blinders on.

 

Easy reason to understand why people took ARMs.

 

1. They could buy "more" for their dollar. People were expecting the equity to just increase infinitely so they could sell it a few years later for a profit if they couldn't afford the new higher payments.

 

2. ARMs are easier to get if your credit sucks.

 

Both pretty stupid reasons, but I can see why it was done so often.

[Noah Harbinger]

Easy reason to understand why people took ARMs.

 

1. They could buy "more" for their dollar. People were expecting the equity to just increase infinitely so they could sell it a few years later for a profit if they couldn't afford the new higher payments.

 

2. ARMs are easier to get if your credit sucks.

 

Both pretty stupid reasons, but I can see why it was done so often.

 

It's still just a matter of when they bought in -- in San Diego, if someone used that ARM to buy a median priced house in 2000, they'd still have almost $200,000 in equity. They could sell their house now, rent for a few years until the last vestiges of the bubble subside, then buy a house in the same neighborhood with only the tiniest of loans.

 

Below-median priced homes still need to fall 44% before they reach their historical, inflation-adjusted prices. Prices have still only fallen to their April 2003 levels.

 

Some Data

[Ford Jellymoulds]

Fords old model Fiesta moved up to No2 spot in Europe in March and should soon knock the Pug 207 of the top spot when the new model come out, Focus sales dropped -16.3% in Europe.

http://www.jato.com/Documents/PRESS%20RELE...015.04.2008.pdf

[TStag]

I remember you saying T-Stag the Chinese Nanjing new MG company were going to crush Ford, GM, & Toyota with their cheap MG cars.

What happened?

 

The project to revive production of the MG TF roadster at MG Rover's defunct Longbridge site is on the brink of collapse, according our sister site, autocar.co.uk. Supplier Stadco announced at the weekend that it was pulling out of a deal to make TF bodyshells for the Chinese carmaker Nanjing, some 18 months after signing a supply deal.

http://www.whatcar.co.uk/news-article.aspx?NA=232289

 

I hope the same thing won't happen to Indian Jaguar, Still l expect MG have just put conquering the world by storm on hold for now ah T-Stag?

 

If your interested I'd suggest you check out www.mg-rover.org for the latest. As I understand it Nanjing has been bought by SAIC who now intend to speed up the development and launch of a totally new range of cars that will be designed and engineered in the UK and manufactured in China with some UK production. The latest is that the Roewe brand (a SAIC company) will be dropped in International markets and the all new 550 which was developed in the UK by Ricardo + former MG Rover engineers will be turned into an MG. There is a rumour that you will here more on April 20 at the Beijing motors show where UK production of the 550 may also be announced and a new MG sportscar. Big things may begin to happen in the next few weeks. Bearing in mind that SAIC is China's biggest car maker and that MG is it's number 1 brand then I don't see why it's unrealistic to see them try and storm world markets with cheap but well engineered "British cars".

 

As for TATA then I'm told that once the ink has dried on the takeover then TATA plpan to announce their intention to relaunch Rover.

[Ford Jellymoulds]

Bearing in mind that SAIC is China's biggest car maker and that MG is it's number 1 brand then I don't see why it's unrealistic to see them try and storm world markets with cheap but well engineered "British cars".

 

As for TATA then I'm told that once the ink has dried on the takeover then TATA plpan to announce their intention to relaunch Rover.

 

MG number 1 brand at what? Not selling cars.

 

When will this MG storm take places T-stag will be full of bullshit you said the things last year now SAIC want to shut the Longbridge factory down according to What Car magazine it does not sound much like a storm to me more like they are dead.

http://www.whatcar.co.uk/news-article.aspx?NA=232289

[salsakingcpa]

Fords old model Fiesta moved up to No2 spot in Europe in March and should soon knock the Pug 207 of the top spot when the new model come out, Focus sales dropped -16.3% in Europe.

http://www.jato.com/Documents/PRESS%20RELE...015.04.2008.pdf

 

 

Great post, and great source of info!!!!

[timmm55]

In all seriousness, aren't we seeing the same people who drove up housing, now doing the same thing to the futures market in oil and even food?

 

Yes. The same people who drove up the stock market, the classic car market, etc.

Money for nothing ....but speculation.