The demise of the European Car Market

Volkswagen

The demise of the European Car Market

 

The European Car Market has been a difficult subject matter for many of the worlds largest car manufactures and the slip in demand has resulted in a number of well known brands announcing financial difficulty.

 

The most well known manufacturer to do so is arguably the Peugeot and Citroen brand who have twice declared themselves as being financially unstable and resulted in the brand having two restructuring loans approved by the French Government.

 

Other manufacturers such as Fiat have also announced a loss in profits due to the brands dependence on home grown sales within the Italian Car Market and plan on using the Alfa Romeo brand as a way back to profitable ways. The Italian car market registered the biggest of decreases in sales over a 12 month period and were arguably the worst effected market to come out of the uncertainty within Europe.

 

Aston Martin have also registered a loss for the year of 2012 as the brand slump to a massive £24 million loss. The subsequently British Car manufacturer blamed the financial struggles on a number of factors including a marketing decision that did not pay off as well as the demise within the European car market.

 

However, other manufacturers such as Range Rover and Porsche have used the demise within Europe as a decision maker and decided to target emerging markets such as the US and China.

 

Other manufacturers such as Renault have used the Dacia budget brand as a method of using the decay in sales as a marketing tactic. The budget brand Dacia has been the brand that has most profited from the effects of the European Car Market.

 

 The success story in the European Car Market

 

The Romanian brand has seen the likes of the Sandero and the Duster model achieve an impressive rate of sales and has even seen the brand overtake the Renault brand in the top European Car market of Germany.

 

The second best market is now the UK Car Market and the Dacia brand has had only 6 months in the UK and sold over 10,000 car models in that time.

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