Car sales in Europe have continued to grow as the European Union slowly emerges from its deep recession. General Motors Co. (NYSE: GM) was the only major car company that did not turn in positive numbers, continuing a string of sales problems that have triggered years of losses. According to the European Automobile Manufacturers’ Association (ACEA):
Source: courtesy of General Motors
In October, in the EU passenger car registrations increased (+6.5%) from a year earlier to 1,072,837 units sold, marking the fourteenth consecutive month of growth.
The recovery remains uneven, particularly as some economies still struggle for economic improvement:
Substantial growth prevailed in most major markets, Spain (+26.1%), the UK (+14.2%), Italy (+9.2%) and Germany (+3.7%), leading to an upturn (+6.5%) across the region as a whole. Only France recorded a slight decline (-3.8%) over the same month a year ago.
In October, sales by Volkswagen, the largest car company in the region by far, rose 6.9% to 276,816. Its market share moved from 25.7% in the same month last year to 25.8%. By contrast, GM has the largest market share in the auto industry in the United States at about 18%.
October sales for the number two manufacturer, PSA Group, which owns Peugeot, rose 11% to 118,432. Its market share dropped from 11.6% to 11.1%. In the third spot, Renault Group sales were up 10.5% to 107,449. Its market share rose from 9.6% in October last year to 10.0%.
ALSO READ: Toyota Launches Hydrogen-Powered Car
In another bit of bad news for GM, its primary rival, Ford Motor Co. (NYSE: F), posted modest results with sales up 4.3% to 76,312, though its market share was down from 7.3% in October of last year to 7.1%.
GM’s sales dropped 5.1% to 69,421. Its market shared took at skid from 7.3% to 6.5%. In a sign of how difficult its situation has become, luxury car maker BMW sold nearly as many cars as the U.S. company did. It posted unit sales of 69,421, up 9.4%.
GM remains hopeful about Europe, although the numbers do not justify that hope. According to The Wall Street Journal:
GM’s European unit, Adam Opel AG, appears to be on the cusp of breaking even before its 2016 target date — welcome news for GM Chief Executive Mary Barra, amid the fallout from a massive recall that is expected to take a $1.3 billion bite out of GM’s first-quarter profit.
Hard to believe.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
