Europe Auto Makers Fight Off Crises But Inflation, Recession, Energy Shock Undermine Prospects – Forbes

by | Jul 25, 2022 | Energy

Oil barrels on stack of golden coins. Growth rise of oil stock prices. 3d illustration

The European automotive industry, buffeted by coronavirus lockdowns, worries about peace after Russian invaded Ukraine, and a microchip shortage is ready for normality, just in time to see customers slam shut their wallets because of resurgent inflation, the likelihood of a recession and an energy threat.

And there are fears action by Russia to limit or stop gas supplies to Germany this winter might take a big lump out of its economic performance. If Europe’s biggest economy is forced to ration energy or perhaps introduce a shortened work week, that would push the idea of buying a new car to the back of many people’s minds.

Meanwhile global consultants Fitch Solutions said sales of cars and SUVs in Europe will fall 9% in 2022. LMC Automotive reckons sales in Western Europe will slide 6.3% in 2022, although that’s an improvement on the previous month’s forecast of a 7.4% fall. But it looks anemic compared with its forecast at the start of the year that sales would bound ahead by a healthy 8.6%. But the invasion of Ukraine put paid to that.

Western Europe includes all the big markets like Germany, Britain, France, Italy and Spain.

The chip shortage looks to be on the mend. Berenberg Bank of Hamburg, in a recent report, said semiconductor shortages f …

Article Attribution | Read More at Article Source

Share This