European scrapping schemes driving small car sales
2009 Ford Fiesta - Click above for high-res image gallery
According to a new study by Jato Dynamics, the European automotive market may be rebounding ever so slightly from its alarming lows of early 2009. Though new car purchases are down by just over 13 percent year-on-year, there was actually a mild 2.4 percent improvement in May over April. Says David Di Girolamo, Head of Jato Consult:
If Germany (up 39.7-percent from May 2008) provides a template for the other markets where scrappage schemes have been introduced, we may be at the very beginning of a period of recovery in Europe. It's far too early to know what the sustained effects of the incentives will be, but at a time when the industry needs to see some rays of hope, it's encouraging to witness some improvement.Interestingly, small, fuel efficient hatchbacks are performing better than the rest of the market, which is thought to be due to the various scrapping schemes in Europe. The redesigned Ford Fiesta is up an impressive 56 percent and the VW Golf is up 32.1 percent over last May. The Fiat Punto and Panda and VW's Polo also posted better sales last month over May of 2008.
Gallery: 2009 Ford Fiesta
[Source: Channel 4]
Reader Comments (Page 1 of 1)
Tim 1:45PM (6/19/2009)
Isn't this why car companies spend $millions of their taxpayer paid "bailout" funds on high paid lobbyists and on campaign contributions to corrupt politicians?
Yep, politicians in your pocket and gullible Statist "progressives" are good for business.
First they get bailout money, then tax relief, and then more sales to the people who were forced to pony up the bailout money and tax relief with $Trillions in new public debt.
I guess that a stronger Business + Corporation partnership is "change".
All Heil, Obama! All Heil the State!
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Craig Mayhem 1:57PM (6/19/2009)
STFU Tim.
Tim 2:04PM (6/19/2009)
Craig,
I see "progressives" are as eloquent (yes, look it up) as ever.
See, some things NEVER "change"… moron
Craig Mayhem 3:30PM (6/19/2009)
Tim,
Take a hike and bring the axe you have to grind with you. I'm sure there are plenty of other sites where your political soap box, either left or right, would be more appropriate.
so, STFU.
Tim 3:53PM (6/19/2009)
Craig Mayhem,
I see that (as a "progressive) you HATE free speech unless, of course it is yours.
Cockroaches HATE light and "progressives" hate truth.
Is "Mayhem" your last name, or are you just 12 years old?
Charles S 2:43PM (6/19/2009)
@Tim:
I'm sorry to say, but people who tend to have the same belief as you are far less "eloquent" than you'd like to portray yourself.
The "conservatives" love to oversimplify things by using catch-phrases and then when you are losing an argument, you just slap a label like "liberalism" and think that you've won the argument. Yes, "eloquent" indeed.
The biggest irony of all? When it's not the GOP in power, then it's those evil politicians and stupid "progressives" but when GOP are in, then big government by the GOP is A-OKAY.
Go talk to any "conservatives" representing the states that relies on auto industry and see if ANY of them are against bailouts. They may play tricks with words, but giving tax cuts to businesses so that they can employ workers is still Big Government.
Tim, maybe you should "look it up" on what it means to be a conservative.
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Tim 3:11PM (6/19/2009)
Charles S.
If you wish to respond to a specific comment, hit the "reply" button directly under that comment. Yes, knowledge is a good thing and so is common sense which "progressives" seem to lack.
Charles S 3:22PM (6/19/2009)
Wow, that's it. That's the indirect insult I got, that I did not use the "reply" button?
Tim 3:36PM (6/19/2009)
Charles S.
It is YOU that is confused, sir.
There is a HUGE difference between a TRUE Conservative and "New" (Big Gov't) "Conservatives", you know... NeoCons which have taken over the Republican party.
To a TRUE Conservative, the NeoCons are just as bad (or even worse) than the "progressives" because they say one thing and do the opposite.
True conservatives believe in the rule or law (not men), The Constitution, TRUE freedom and that power comes FROM "We, the People and is temporarily LOANED to gov't. and that our Rights are natural and inalienable (not unalienable) and that they come from our "creator" (who or whatever that is depends on each individual's belief). Your belief is your own, and I don’t care as long as you don’t force it upon me against my will.
Progressives & NeoCons (Both Statists) believe that power and rights comes FROM gov't and is loaned to the people... THAT belief ALWAYS leady to Tyranny such as what we are facing from Obama's "change" toward fascism, endless wars and bottomless debt!
Charles S 3:58PM (6/19/2009)
Quoting Constitution is convenient, but again over simplification.
If you own a home and take tax deductions, then you're just about as guilty as any NeoCons.
Matt 3:06PM (6/19/2009)
What's going to happen next year when there's an even steeper decline in sales because people that were going to wait until then to purchase already bought one this year? I know that every car has a life expectancy, and buying new cars before your old one wears out does not mean you can now wait longer for a third purchase. But, is it possible that some markets have hit equilibrium and just don't need as many cars per year as before since the majority are still running just fine? I mean, if you accelerate purchasing in a market that was at equilibrium, you can't expect the accelerated rate to be sustainable, it will come down. Furthermore, when the incentives run out sales will have to fall below the average rate in an equal and opposite percentage as the incentivized increase in order to maintain the natural purchasing rate, right? In the long run you just can't force a market to consume more than it needs. The only question is, how much do we need, and are we oversupporting this industry?
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Charles S 4:40PM (6/19/2009)
Sometimes I really hate the comment system here... lost another post...
It's hard to tell if we are really achieve a lower state of equilibrium or the market is just pulling back due to fear.
Because the automotive industry is not flexible like say Proctor and Gamble, two or three years of slow sales can wreck the system to a point of no return. Any recovery today will likely take a decade as it is. The stimuli today is intend to keep the industry alive, but not necessary to support old sales figures (ie pumping out more cars than the market actually needs).
Throwback 4:12PM (6/19/2009)
Attributing an increase in sales in the Golf and Fiesta to the scrappage plan is silly. Those 2 vehicle's sales increased because they are all new and the top sellers in their segments.
If Prius sales increase next month of last uly will it be due to the cash for clunkers or the fact the car is all new?
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Carlos 6:05AM (6/20/2009)
Here in Spain the fall this year compared to the previous was 43% and only the strong government support have helped to stop the fall, but the people havent got job or money for a new car, it´s terrible.
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