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European and American auto markets are equally unappealing. The data shows that in the period from January to July in 2012, the sales volume was 6.9 million, which was a decrease of 6.3% compared with the same period of last year. The United States Department of the Treasury has implemented huge subsidies for the auto industry in 2009, and the total loss may reach $25.1 billion.
It seems that the world's major car companies have to tighten their belts next life!
There will be 16 factories closed in 5 years
European car market cannot recover by 2020
The European debt crisis has caused many European car makers to lay off their staff, shut down, and withdraw. So, how long will this crisis last? Three years? Five years? Eight years?
The answer is twelve years!
A recent research report stated that the European automobile market will not be able to return to its pre-crisis level until 2020.
Business consulting company AlixPartners predicts in its latest "Global Automotive Industry Outlook" that the euro crisis and high unemployment rate will continue to affect consumer confidence in the coming years. The consultancy said that the demand for new passenger cars and light commercial vehicles in Western Europe will be reduced by about 1 million vehicles to 13.5 million next year, a decrease of 3.3 million vehicles from the sales volume before the start of the financial crisis in 2007. "Industry sales are unlikely to recover to 16 million vehicles by 2020."
According to statistics, the sales of passenger cars in Europe from January to July 2011 were 7.36 million units, which represented a decrease of 14% from 8.56 million units in the same period of last year. The sales volume from January to July in 2012 was 6.9 million units, which is compared with the same period of last year. Declined by 6.3%. The continuous decline in sales from 2010 to 2012 also confirms the economic downturn in Europe, and major car companies are also facing severe challenges.
According to relevant media reports, there are currently 7 million employees in the European automotive industry, of whom 1.5 million are temporary workers. These people are facing tremendous pressure from unemployment. According to statistics, there are currently a total of nine brands and groups that have chosen to close down factories and layoffs in the European region. It is expected that by 2017, there will be 16 factories in Europe that will be closed down, and the number involved will be about 43,300.
It took too much money to save the three car giants
U.S. government or loss of $25.1 billion
The European auto market is difficult to recover in the short term. The auto market in the United States is also difficult to defend this year.
Recently, the U.S. Department of the Treasury issued a report stating that since the government began implementing huge subsidies for the auto industry in 2009, the total loss may reach US$25.1 billion, which is higher than previously expected. Does GM, Chrysler, and Ford feel guilty about this? Everyone knows that three years ago the U.S. government spent a lot of money for the three car giants.
Recently, the Obama administration submitted its report to the National Assembly for the US$85 billion in assistance to the auto industry in 2009 and raised its expected loss to US$25.1 billion. Due to the sudden drop in the stock price of General Motors, the U.S. Treasury delayed the remaining 26% of GM stocks held by the sell-off. Before the election in November this year, the U.S. government will not sell any shares held by auto companies. The only reason why the U.S. government is willing to pay the bill is because the auto industry has retained more than 1 million jobs in the U.S. industrial center. There is also a bad news. According to sources from suppliers and unions, GM’s Michigan assembly plant will stop production of Chevrolet Woolada plug-in hybrid vehicles for four consecutive weeks. Although this is not a "big event," God knows whether the next US government will hold the situation.
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China's auto market is sluggish and the world is not much better!
May 14, 2024