European Auto Industry Revises Growth Forecast, Predicts Sales Drop
The European Automobile Manufacturers Association (ACEA) has revised its forecast for 2019 car sales in the European Union, predicting a 1% drop.
The forecast was updated on Thursday, June 27, during the annual general meeting of ACEA in Brussels.
The 2019 sales growth was originally estimated at 1%. However, currently, the association predicts a slight decline. Total EU car sales in 2019 are not expected to surpass a 15 million milestone.
ACEA Secretary General, Erik Jonnaert, believes that the slowdown can be associated with protracted Brexit negotiations and changing macroeconomic conditions. Jonnaert also claimed that this type of stabilization is natural for the market.
According to a statement made by ACEA on June 18, the EU car market rose for the first time in nine months due to a significant sales surge of 9.1% in Germany. Meanwhile, in the UK and Spain, the number of car sales dropped by 4.6% and 7% respectively.
The level of growth in EU car sales has been slowly decreasing for several years. In 2015 it was +9.3%, in 2016 +6.8%, in 2017 +3.4%, and in 2018 only +0.1%.
ACEA, founded in 1972, represents 15 major EU automakers, including BMW Group, Fiat Chrysler Automobiles, Ford of Europe, Renault Group, Volkswagen Group, and others.
According to ACEA, the automotive industry accounts for around 13.8 million, or 6.1% of all EU workplaces.