Europe's Auto Sales Decline Leads to Recession

Economists say we are not in a period ofEurope may have been the only real hope that
"negative growth." But in Europe and the UnitedAmerican automakers could have a successful
States, the automotive industry is crippled byleap to recover in 2008. And it seems that the
sales doldrums. After weak sales in November,hope is vanishing…
auto sales figures look pretty bad in the saidGerman auto giant Volkswagen on Sunday said it
territories.had sold a record number of 3.37 million VW
Sales of new cars plummeted 1.1 per cent invehicles in the first 11 months of this year. The
Europe in November with the largest automakersfigure shows an increase of 8.8 percent over the
hurt the most. Sales by Volkswagen, Europe'ssame period in 2006, said the automaker. The
largest automaker, dropped 7.2 per cent tomaker of chic VW mirror added the company's
255,825 vehicles. "Consumer uncertainty fed by,sales increased 10.3 per cent in November with
amongst others, sharp rises in oil price, loss in324,000 cars delivered to clients.
purchasing power and regulatory changes'' has"After 11 months, we have sold roughly as many
hurt demand in Europe, said Bloomberg.cars as we did in the whole of 2006," Volkswagen
Of course, General Motors Corp. and Ford Motorboss Martin Winterkorn said.
Co. also have large auto sales operations in EuropeThe German automaker posted strong
as well. That means that they will likely to exertthird-quarter results in October and said it
great effort in both their home market andexpected record full-year sales as Chinese and
Europe. The two largest American automakersSouth American growth offset slumping turnover
are now left with Latin America and Asia,at home and in the U.S. The company said
especially China, as their only real growth markets.Sunday that VW sales had grown most in the
As such, watchers say it is not shocking to knowBrazilian market with 448,000 units sold, a raise of
that both stocks trade near 52-week lows. The34.7 percent. China came second with a
Dearborn-based automaker has very little28-percent hike, or about 726,000 vehicles, AFP
presence in China. The Detroit-based automaker,said.
meanwhile, is tied with Volkswagen as the biggestThe company has forecast that total sales in all
automaker in China, but local companies want toits units would reach the six-million mark this year.
take some of those sales away.