Just three months ago, as of April, the story was that the European car market registered its first gain in 19 months, consumer confidence was up "higher than average" and observers were hoping the month could be the first footstep in the trek to "legitimate recovery," even though Europe's four-month sales were down seven percent. The stats for June are a return to dark portents, with Bloomberg now reporting that sales for the month haven't been this bad since 1993. As a result, investor confidence in Germany has taken a dive and Eurozone exports have fallen for a second straight month.

There were 1.18 million cars registered in June, which represents a 6.3-percent decline from a year before. The overall seven-percent decline in car sales remained on track, the half-year number of 6.44 million vehicles sold so far this year being a 6.7-percent drop from 2012 (that number also being the smallest number of cars sold since 1993). The UK market was the only bright spot, jumping by 13 percent but being more than offset by Germany's 4.7-percent decline and France's 8.4-percent drop.

No one expects it to get better, either, one analyst saying "I don't think that it will get better in the very near future," Renault, Peugeot and BMW saying they expect a five-percent decline year-on-year, and another analyst opining that perhaps the best that can be said is that perhaps things are bottoming out, but that's "not the same thing as saying they have started to recover."


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  • 85 Comments
      • 1 Year Ago
      [blocked]
        goatcars2
        • 1 Year Ago
        Absolutely correct....Obama's dream for America is a nightmare in Europe.
      shiloh1388
      • 1 Year Ago
      Since European pollution standards for their autos are dismally inadequate, I am not that sympathetic that Euro speed demons are not able to buy new cars like candy bars. Wake up and smell the pollution in the Alps and Americans may be a bit more generous with our democratic ideas.
        iamderekw
        • 1 Year Ago
        @shiloh1388
        I stood on a corner in Madrid and nearly choked to death. They do need some work in that department
        aatbloke1967
        • 1 Year Ago
        @shiloh1388
        Another American who is insidiously clueless as to the reality of he world beyond their shoreline.
          shiloh1388
          • 1 Month Ago
          @aatbloke1967

          I have 'done' Europe, sugarpie, pollution dog. arf arf. BMW is the worst pollution pig of Euro Makers. The others no prize really, including Socialist Rolls, Vulva or Volvo, or whatza a pig by any other name. Grow up, because obviously your grandchildren won't.


           

        aatbloke1967
        • 1 Year Ago
        @shiloh1388
        Pity you didn't.
      Sylvie
      • 1 Year Ago
      In a world economy, will we be next?
      aatbloke1967
      • 1 Year Ago
      Until austerity measures are capitulated, consumer confidence will remain in the doldrums in Europe. The fact that European bankers are still paying inordinate bonuses - a practice the EU is staunchly against - and governments steadfastly encouraging investment from the middle and far east to promote property development while curtailing any form of manufacturing growth, the stagnation will continue.
        • 1 Year Ago
        @aatbloke1967
        [blocked]
          aatbloke1967
          • 1 Year Ago
          Absolute rubbish. The cause of the entire crisis was the enormous bailing of irresponsible European banks who spent a good number of years cashing in on both the US sub-prime market and other toxic debt, as well as rampantly over-inflating the real estate market across Europe. Austerity measures and the sigle currency are two major problems causing economic stagnation in Europe. High taxation in Europe gets put to good use - creating means to promote quality of family life via SMP and SSP for example; pristine highway maintenance, and accessable healthcare for everyone. That taxation was squandered by governments in bailouts at a time when the global economy was slowing down. Europe does not want to be like the US, with its poor quality of life, sky-high levels of divorce, homicide and SSRI use, preposterously twisted healthcare system,and decaying transport infrastructure.
          masteraq
          • 1 Year Ago
          A recession, by definition, is a decline in the collective spending level in the economy. The government is a big chunk of the economy. A decline in government spending, unless offset by a larger increase in non-government spending, will cause a recession. Unfortunately, at least in the time frame of up to 5 years or so, a decline in government spending causes a decline in private spending as well. To get the economy to grow, governments should CUT TAXES and INCREASE SPENDING, a la Ronald Reagan. You can't lower total debt levels quickly by cutting spending. Instead, lower the cost of holding debt with MONETARY EXPANSION. Once the economy is growing, it brings down the debt-to-GDP ratio by itself. This is standard textbook economics, which Euro governments refuse to follow. Instead, those idiots cut spending, raise taxes, and raise interest rates and are shocked, shocked that the economy won't grow.
          aatbloke1967
          • 1 Year Ago
          "a lack of foreign capital investment" Clearly you have no idea whatsoever as to the amount of investment from the far east and middle east in places like London, Paris and Frankfurt. The high rental being charged is forcing more and more residents out. Almost everything in London these days is owned by Qataris and Malaysians.
      dreadcthulhu01
      • 1 Year Ago
      European goverments have been trying to discourage car ownership for years, with a high VAT that makes buying a car in the first place pricey, and then the ongoing high road & fuel taxes. Then they use that money to subsidize public transport. Of course car sales will keep dropping.
        aatbloke1967
        • 1 Year Ago
        @dreadcthulhu01
        That's little to do with it. The European car market is completely saturated and used cars fetch next to nothing. In a period of economic uncertainty, new car purchases are not a priority.
      hsstempe
      • 1 Year Ago
      Just might be the increase in sales for Ford and GM and the rat Chrysler mean AMERICANS ARE BUYING AMERICAN. HOPEFULLY THAT IS THE REASON. NOW IF WE CAN DEPORT THE KOREAN AND JAPANESE CRAP MAYBE DETROIT WILL COME BACK AND WE WILL CONTINUE TO PURCHSE AMERICAN MADE. WAY IN HELL OVERUE! KUDOS TO FORD FOR NOT TAKING THE SOCIALISTS MONEY!
        icemilkcoffee
        • 1 Year Ago
        @hsstempe
        Try to compose your thoughts before you scream it all out in caps. What does your rant have to do with the article again?
      • 1 Year Ago
      [blocked]
        aatbloke1967
        • 1 Year Ago
        That's utterly baseless opinion. The biggesrt hurdle Europe has is the single currency, because the worst hit poorer member states cannot dig their way out via inflationary growth. The single currency needs attention first, followed by less focus on austerity measures. The forecasts are that there will be another five years of stagnant activity in Europe.
        icemilkcoffee
        • 1 Year Ago
        Complete and utter nonsense. Europe has cut itself to the bone and scarificed plenty of its citizens to the God of Austerity already. The lesson here is that cutting and austerity will only make your recession worse. President Hoover learned this lesson (or not) in 1932. Too bad europeans insist on re-learning the lesson all over again.
          gibbs5988
          • 1 Year Ago
          @icemilkcoffee
          What are you talking about, Hoover was a big spender, it is a misconception that he had a laissez-faire approach and it led to the depression. He initiated major tax increases and public works programs such as the construction of the Hoover dam. Major spending only made the depression worse, not austerity.
      jebibudala
      • 1 Year Ago
      Next time I visit a car dealership and they ask, "Is there anything you're interested in?" I'll respond, "No thanks, I already have a car."
        juststeve35
        • 1 Year Ago
        @jebibudala
        Uh, why? As in, why would you be in the showroom unless you were interested in a car?? Do you go to the supermarket when you don't need groceries? To the movie theater to sit in the lobby??
      Michael Scoffield
      • 1 Year Ago
      I live in Europe and let me tell you that governments make it as difficult as possible to own a car. The European economy is free falling, taxes are very high and gas very expensive. Very few people afford new cars.
        zekerfit
        • 1 Year Ago
        @Michael Scoffield
        Many of us here in the US havent owned new cars and I am 65, good job career, and wouldnt own a new car. I worked on VW for years and believe someone else should enjoy the "NEW" car, I am happy with low millage older cars at a third of the price. The economy here is smoke and mirrors too.
          aatbloke1967
          • 1 Year Ago
          @zekerfit
          Germany was the last EU state to switch from assessing VED and company car tax from a displacement basis to a CO2 basis in 2009. Having lived on both sides of the Atlantic, and knowing that there are considerably more newer cars on the roads in Europe (average vehicle age in Western Europe is 6 years compared to over 9 in the US, primarily due to much more stringent vehicle inspection requirements in the EU), then I would say your so-called observations are inaccurate. But your "hamster" comment simply gives the game away that you're talking complete hokum.
          stonehunte
          • 1 Year Ago
          @zekerfit
          I'm American, but I've spent some time in Europe working with the locals. Cars are considerably more expensive there than here. In Germany where I was working a BMW or Mercedes was about twice what it costs in the US adjusted for exchange rates. Gas was around $8/gal and diesel $6.50/gal in 2009. Most of the increased costs were due to taxes and vehicles are also taxed on displacement. Excessive taxes tend to inhibit the economy. A lot more Americans can afford newer and nicer cars than Europeans due to these restrictions. The tax on displacement and highly taxed fuel is why so many European market cars have hamster engines.
      rb
      • 1 Year Ago
      Renault...had one. I guess I had should say the dealer had it more than I did. Always in for repairs. Big mistake...huge mistake.
        aatbloke1967
        • 1 Year Ago
        @rb
        Don't tell me, you're judging a product by something you owned 40 years ago. That sounds like the usual brand of nonsensical American common sense.
          nassauscot
          • 1 Year Ago
          @aatbloke1967
          You sound like your typical,arrogant European. Go back across the pond,please and take Piers Morgan with you!
          aatbloke1967
          • 1 Year Ago
          @aatbloke1967
          And you sound like an idiot, irrespective of nationality. If, like me, you have family, property and various chattels and other assets on both sides of the Atlantic, we can talk. Otherwise, I suggest you go away and annoy someone else.
          aatbloke1967
          • 1 Year Ago
          @aatbloke1967
          Yonoclue, give it up. You're a child with more aliases on here than a common crook. Nothing more. As for having no concept of humour ... well, you're the American, not I.
          • 1 Year Ago
          @aatbloke1967
          [blocked]
          Floridian
          • 1 Year Ago
          @aatbloke1967
          What is it with you and judging Americans?
          • 1 Year Ago
          @aatbloke1967
          [blocked]
          aatbloke1967
          • 1 Year Ago
          @aatbloke1967
          Yonoclue ... you never even started, big man. Get your parents to request a grant to send you to summer school, it'll save you from embarrassing yourself on here and simultaneously educate you.
      knightrider_6
      • 1 Year Ago
      OMFG! It's Obama's fault. Come on teabaggers. Get the balls out of your mouth for a minute and say it.
        CUSACitizen
        • 1 Year Ago
        @knightrider_6
        What a horrible comment. Is that all there is in your heart... hate for those who do not share your ideology and opinions? WE are all Americans sharing one ship, we all sink or we all float.
          the.fog
          • 1 Year Ago
          @CUSACitizen
          Some of us don't mind floating to see others drown.
        iamderekw
        • 1 Year Ago
        @knightrider_6
        Lol I thought the same thing
        LA is Best
        • 1 Year Ago
        @knightrider_6
        knight, as I read your post pinhead comes to mind...........the O regime is bad for America and the world however it's socialism that doesn't work and it NEVER has!
          clquake
          • 1 Year Ago
          @LA is Best
          You utter moron. You really need to grasp what socialism is before you comment about it.
      Bob
      • 1 Year Ago
      It's catching up with these people and maybe it will swing to the japanese cars soon.Don't buy jap cars or euopean ,buy American,it will only help our economy,because King Obama is not doing anything to spur this economy.
        posthuf
        • 1 Year Ago
        @Bob
        Do you want me to by 'jap cars' that are manufactured, sold, serviced, and repaired in the U.S., or American labled cars that are 'assembled in the U.S.' using parts made in every other country of the world?
          Bob
          • 1 Year Ago
          @posthuf
          Even though "Jap" cars are made here in the US of A, Where do you think the money goes from those cars? Huh? And even if a portion goes to Japan they are still screwing this country. I will never do it. Keep it in the US.
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