Will U.S. Car Sales Compensate for Losses in Europe?

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

european central bankDemand for new cars in Europe declined in January for the fourth year in a row, according to data released on Tuesday. The European Automobile Manufacturers’ Association reported that passenger car registrations — a proxy for sales — declined 8.7 percent year over year, reaching a new historic low of just 885,159 units.

The news is not necessarily unexpected. Executives at major manufactures have indicated that they don’t expect to see a recovery in the European car market at large until the middle of the decade. Even then, hard-hit regions like Spain, Italy, and Greece could continue to suffer. Sales declined 9.6, 17.6, and 34.5 percent in each country, respectively.

These stocks are hitting our Profit Targets. Click here now to discover winning stocks!

General Motors (NYSE:GM) is expecting European sales to continue declining through 2013. In 2012, the American car manufacturer posted pretax losses of $1.8 billion, bringing total European losses since 1999 to an astonishing $18 billion. The company has pursued a parts-buying and manufacturing partnership with French manufacturer PSA Peugeot Citroen, but progress has been slow so far.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business