First-half results from the major European carmakers have revealed that the market is declining, Financial Times analysts have reported.

DaimlerChrysler, PSA Peugeot Citroen, Renault and Volkswagen have all produced figures for the first half of the year that give weight to pessimistic forecasts for the industry.

DaimlerChrysler is worst off, thanks to the impact of its declining American business, while PSA has 'damaged its credibility by failing to meet margin targets' and failing to produce demand-stimulating new models.

'Maintaining a successful model range' has always been key to the health of industry players according to the FT, but is especially significant under the current 'difficult conditions.'

Renault and VW have responded accordingly, with the Scenic, Touran, Touareg and fifth-generation Golf respectively, although Renault is the only company in the group to have exceeded expectations.

Market recovery is not now expected to take place during 2004, as had been hoped, and efforts to cut production costs are predicted to continue into 2005.