Automotive production declined by 35 per cent in Europe during the first quarter of 2009, according to new figures released today (14th July).

The European Automobile Manufacturers' Association (ACEA) confirmed that a total of 3.4 million vehicles were produced across the continent over the three-month period.

As demand continued to shrink amid the economic downturn, passenger car output was down by 31 per cent, while truck and van production decreased by 57 per cent.

Furthermore, demand for passenger cars and commercial vehicles fell by 17.2 per cent and 35.7 per cent respectively, while the figures were 13.9 per cent and 37.6 per cent for the first five months of the year.

"While the outlook for the second half of 2009 remains uncertain, current developments imply that production may fall as much as 25 per cent over the whole of 2009 for passenger cars and at least 50 per cent for commercial vehicles," ACEA said.

"Given the importance of automotives for Europe, it is clear that further difficulties for the sector will continue to negatively impact the whole of the economy."

The UK led the production declines in the major markets with a drop of 57.4 per cent, followed by France (down 46 per cent) and Spain (decrease of 40.2 per cent).

Italy recorded a 38.6 per cent fall and Germany saw a 32.3 per cent dip in output, while Austria was the worst affected, posting a production slump of 69.2 per cent.

However, ACEA also noted that a range of incentives - particularly discounts for buyers who trade in their old cars for scrap - are now in place in 13 of the European Union member states.

As a result, the decline in demand over the first five months of the year has been stemmed, with the 13.9 per cent drop representing an improvement on the 19.6 per cent decrease recorded in the last quarter of 2008.

The fall in May registrations was limited to 4.9 per cent, with registrations increasing in Austria (4.8 per cent), Greece (5.1 per cent), France (11.8 per cent) and Germany (39.7 per cent).

Source:

Automotive production down 35% in first quarter 2009 (14/07/09)

Ÿ Adfero Ltd