EU automobile sector anticipates a ‘horror fall’ – Bild
The EU automobile market is currently facing "harder" times than it did during the Covid-19 pandemic, according to an expert who spoke with the German tabloid. Read Full Article at RT.com.
TroibNews 
A prominent expert has warned that this year's sales slump is poised to worsen, as reported by the German tabloid Bild on Thursday.
According to the outlet, EU automakers are experiencing their most challenging months since the Covid-19 pandemic. Car sales in the bloc have decreased by 200,000 vehicles in the first eight months of 2024 compared to the same timeframe last year, signaling troubling trends ahead, as highlighted by Ferdinand Dudenhoeffer.
Dudenhoeffer, the founder and former director of the Center for Automotive Research—a private institute focused on industry analysis and transport policy—indicated that electric vehicle sales have dropped by 8.3% compared to last year, equating to 140,000 fewer models sold up to August.
He noted that “important large car markets such as Germany and Italy were already slightly down in the first eight months of the year,” warning that conditions “are not getting better.”
To offset their losses, car manufacturers have begun raising prices, Dudenhoeffer pointed out. He reported that the 20 most popular gasoline-powered car models now cost approximately 10% more. “The next few months will be very difficult for the industry. Worse than it was during [the Covid-19 pandemic],” he cautioned, emphasizing that Germany is expected to suffer particularly, with a market recovery not anticipated before 2026.
Last month, Volkswagen, the EU’s largest carmaker, revealed that for the first time in its 87-year history, it is considering plant closures or layoffs in Germany. The company also stated it would have to terminate its employment security program, which had been designed to stave off job cuts until at least 2029.
Earlier in September, Volkswagen Group CEO Oliver Blume described the current state of the automobile market as “highly challenging and serious,” adding that the potential for “plant closures are no longer excluded.” Details on how many of the company's 120,000 employees in Germany could face layoffs were not disclosed.
Germany’s economy had already experienced a recession in late 2023, and official statistics indicated a contraction in the second quarter of this year. Reports from Reuters noted that weakness in the automotive sector was a primary factor behind the decline in the country’s industrial production in July, raising concerns that Germany might be facing another recession.
Ian Smith for TROIB News
According to the outlet, EU automakers are experiencing their most challenging months since the Covid-19 pandemic. Car sales in the bloc have decreased by 200,000 vehicles in the first eight months of 2024 compared to the same timeframe last year, signaling troubling trends ahead, as highlighted by Ferdinand Dudenhoeffer.
Dudenhoeffer, the founder and former director of the Center for Automotive Research—a private institute focused on industry analysis and transport policy—indicated that electric vehicle sales have dropped by 8.3% compared to last year, equating to 140,000 fewer models sold up to August.
He noted that “important large car markets such as Germany and Italy were already slightly down in the first eight months of the year,” warning that conditions “are not getting better.”
To offset their losses, car manufacturers have begun raising prices, Dudenhoeffer pointed out. He reported that the 20 most popular gasoline-powered car models now cost approximately 10% more. “The next few months will be very difficult for the industry. Worse than it was during [the Covid-19 pandemic],” he cautioned, emphasizing that Germany is expected to suffer particularly, with a market recovery not anticipated before 2026.
Last month, Volkswagen, the EU’s largest carmaker, revealed that for the first time in its 87-year history, it is considering plant closures or layoffs in Germany. The company also stated it would have to terminate its employment security program, which had been designed to stave off job cuts until at least 2029.
Earlier in September, Volkswagen Group CEO Oliver Blume described the current state of the automobile market as “highly challenging and serious,” adding that the potential for “plant closures are no longer excluded.” Details on how many of the company's 120,000 employees in Germany could face layoffs were not disclosed.
Germany’s economy had already experienced a recession in late 2023, and official statistics indicated a contraction in the second quarter of this year. Reports from Reuters noted that weakness in the automotive sector was a primary factor behind the decline in the country’s industrial production in July, raising concerns that Germany might be facing another recession.
Ian Smith for TROIB News
