A leading automotive industry forecaster claimed on Friday (7th November) that car sales in western Europe plunged during October and are set to slump further still in the coming months.

JD Power Automotive conducted a study which found that sales were down 15.5 per cent on a year-on-year basis as the economic downturn continues to curb demand.

Furthermore, the body predicted that sales will decrease by ten to 11 per cent in 2009 as the industry deteriorates to a similar degree as recorded in the previous recession of the 1990s.

A statement read: "A sharp economic slowdown appears inevitable and the most important question which remains to be answered is how deep and long this event will be."

In terms of the UK market, JD Power recorded a significant decrease of 23 per cent during October and it expects a "significant double-digit decline in 2009".

Sales figures have slumped similarly in Germany and France recently, while in Spain and Italy, where new registrations have dropped rapidly, the body expects sales to become "more stable, but much reduced".

It also claimed that government intervention through various schemes and incentives aimed at improving sales would only have a "limited impact" with consumer confidence sliding and financing becoming increasingly expensive.



Source:

European car sales hit the skids (07/11/08)
http://news.bbc.co.uk/1/hi/business/7715127.stm