This article was originally published by Tyler Durden at ZeroHedge.
The global automotive collapse continues, denting the narrative of the “strong consumer”, as countries again posted poor YOY comps despite the industry starting to show signs of shakiness during mid-2018. The China/U.S. trade war and global economies that have slipped into recession have played a role in one of the largest global slowdowns in the automotive sector to date. And that trend is now accelerating in the EU.
According to new data from the European Automobile Manufacturers Association out of Brussels shows, new car registrations in the EU plunged again, this time by 7.8% to 1,446,183 units in June, the biggest monthly drop of 2019.
The drop is being attributed to a negative calendar effect due to the fact that June only counted 19 working days across the EU compared to 21 days in 2018. The five major EU markets all posted declines as a result, with France falling 8.4% and Spain falling 8.3%. However, that’s hardly the full story as individual auto manufacturers in the EU are not showing any signs of relief, according to Bloomberg:
- Daimler last week issued its fourth profit warning in just over a year due to the costs of a recall and allegations of emissions-tampering in diesel cars. The carmaker also blamed weaker global markets.
- BMW in May reported its first loss in a decade in the main automotive division.
- Renault’s partner Nissan Motor Co. was the worst hit during the first six months of this year, registering a 24% drop in European sales.
- After Nissan, Honda and Fiat-Chrysler registered the worst sales in Europe since the start of the year with 15.4% and 9.5% declines respectively.
The European data continues an ugly worldwide trend for automobiles, as the first half of 2019 saw demand for new passenger cars across the EU down 3.1% to 8.2 million registrations. Alas, things don’t look to be getting better anytime soon, either. Peter Fuss, a partner at EY consultancy said: “We’re standing in front of a difficult second half of the year. Little positive impetus for the new car market in the EU can be expected in the coming months.”
The problems in the auto market are hardly contained to the EU.
About a week ago, we reported that China was again bracing for another annual drop in auto sales. Earlier in the year, the CAAM had thought zero growth for the year was a possibility, but now it looks like vehicle sales will once again drop – even after an abysmal 2018.
The sector contracted for the 12th straight month in June and sales were down 2.8% in 2018.
*There are enough warning signs that this economy won’t last (and that it isn’t as good as we’re being told). The time to prepare was about 6-8 months ago, but if you haven’t started yet or don’t know where to begin, get your finances in order. Cut costs, live on less than you make, and consider buying gold.
How To Best Prepare Yourself For The Coming Financial Crisis
At one time the phrase, “What’s good for GM is good for America” held true when GM produced in the USA. The global economy now has Dr Copper as a measure. Regardless new auto sales are still an indicator. When things are tightening its first autos, then likely simultaneously homes, and the last food when it really gets rough. Fortunately there is a great expanse in the downward trajectory between auto / homes and food as the latter is destabilizing.
The drop in car sales in the EU is very significant when you consider that the EU has almost twice the number of people as the US. The number of sold units would look good for the USA. The large blip up in car sales in China has been attributed to massive government “fleet sales” after months of decline.
Apparently the housing bubble has also popped in China (finally) as furniture sales are down 17% YOY; and 50 major manufacturers have moved their production out of China having seen the writing on the Wall.
China is toast … toast … toast; as I have told this community many times. 🙂
Auto sales have “plunged” 7.8% because:
1. it’s July
2. the EU and countries such as Sweden have just introduced ridiculous annual taxes as high as $2,200 per year per new car as incentive to go “green” and buy a coal powered electric car instead. You know, the ones that cost twice as much and go one third as far and have a tendency to incinerate the occupants in a crash. Seems that Europeans have collectively said “f**k that”.
The cars we own are lasting a lot longer than the ones I started driving in the 1960’s, plus folks are holding on to them more I suspect. Lastly, much of Europe’s population now comes from Muzzie $hit hole countries, so being on welfare and living in Cities they don’t need/can’t afford a new Saab/BMW/Mercedes. (Poor little Muzzies, too bad soooo sad! )
Speaking of Muzzie $hitholes, saw on Jihad Watch where some dude in Libya has threatened to send another 800,000 criminal terrorists to Europe from his peaceful/ wonderful country. (sarcasm)
Yes they certainly last longer. In the 60,s a vehicle whos engine lasted a 100,000 miles was a rare thing. most cars where junked at ten years or 70,000 miles. We have a 2000 model that has almost 300,000 miles. nothing major just oil & filter changes one set of spark plugs! and its still going strong. no rust out paints good drives and rides great. Why would we spend thousands on a overpriced half plastic new vehicle?
Love my Tacoma, it’s name is Tony . Had a 1999 Rav4 before that, drove it for 11 yeasr, sorry that I traded it, but still love my truck.
I have an 02 tacoma with 220,000 miles and runs great. When I was young I had a 67 Ford Galaxie 500 with a 390. That thing burned oil like a locomotive lol. Nobody would let me park in their driveway because of the leakage too. I could stomp on the gas and smoke out a city block in under a minute ha ha ha ha. I wish I could have stuck AOC’s mouth on the tailpipe! 😛
Old Guy, that 64′ Nova I had when I was 17 was already burning a quart of oil every week at 69000 miles when I got hit by that UHAUL truck. Actually that idiot did me a favor totaling that car but I never told him that, LOL. I ended up getting a 69′ Malibu with only 30000 miles on it for $700. That was in 1974.
Volkswagen is stopping production of the “Beatle”. Good riddance to that piece of shit!
I had a 1972 Dodge Dart Sport (Duster body) which had over 100,000 miles on it when I bought it. I put another 100,000 miles on that very reliable slant 6 engine, doing all engines work myself. I sold it only because my employer insisted the Dart wasn’t a good fit for the company image, and they let me drive a company car instead.
When I sold it I got twice what I paid for it initially because it was by then considered a classic, and because I’d taken very good care of it. I wish I still had that old slant-6 225 Dart; it was a great vehicle, unrivalled by anything I’ve owned since.
When I first looked at the 2003 Dodge Ram 1500 I now have, I was skeptical. It was a one-owner; had the original title to prove that. Only 130,000 miles on it when I put a battery on it and turned on the ignition. The truck had been sitting in a garage since 2010 and had not been run since that time. I topped off all the fluids in it then cranked it. It took a few tries but it turned over and would run although it had some old gas in it. Paint was a bit faded but interior in good shape. Tires were dry-rotted so I had it towed to a shop I know and trust. Paid $5000 for the truck then sunk another $5000 into it getting it road-worthy. Replaced all the fluids, hoses, belts, tires, brakes, tuneup. Even had the gas tank dropped and drained plus the fuel filter replaced. Only thing NOT working on the truck is the A/C but that will be fixed before I get moved. First time I took it on the street it ran and drove just fine. I think I came out pretty good for $10,000 total. I looked at a bunch of trucks older than that one beforehand but they were too far gone for me. I’m just surprised the engine wasn’t seized up when I first started it. Call it what you will but I’d still take it over any $50,000-$70,000 truck. It will serve my purposes for years to come.
Be sure and use mobil-1 synthetic oil if you really want it to last. Besides you only need to change it every 10K. Autozone usually has 5 quart jugs and filter on sale.
genius, you must’ve been reading my mind. That’s exactly what I had put into it at the shop. It took 3 weeks to get that truck road-ready.
its not that people dont want to buy cars they dont have the job or available credit and are upside down on the car they own. without a down payment cars are $500 month plus you need gap insurance then sales tax and title fees ect ect. people have been priced out of buying cars their only option is leasing or buying a cheap used car or just keep fixing their bomb. the next move is outlawing diy auto repair.
Zoltar the fortune telling machine says to put (her chest) against the glass.
Also, lefty, liberal car alternatives will be doing miraculously-well (cough…corporate welfare… ahem), while the evil carbon machines are mysteriously failing. Excuse me, something was hard to swallow.
Organic materials under heat, pressure, and reducing atmosphere, are fractionable, make an oil refinery.
And, hobos make nature-loving methane, all over the streets. (Dairies and red meat make the kind of methane which is damaging to nature.)
Immediately after AOC wanted to ban air travel, apologetic, enabling industries said it could be electric. (Pic looked like a hang glider). Also, that banana peels were renewable source of jet fuel. One proposed, solar aircraft, looked exactly like the exaggerated biplane, from the “Lisa’s Wedding” episode of the Simpsons.
The name of the game is not used cars salesmen. It’s not starry-eyed visions of progress. It’s controlled chaos. They intend to be change agents. Follow the bouncing ball. Nothing is too stupid or too far out, for blithe nihilists and iconoclasts.
I think the decline in auto sales indicate another success by the left (Progressives). Their vision of a socialist utopia (NOT POSSIBLE) is antithetical to the independence provided to an individual if he/she has his/her own vehicle. Their efforts to move taxpayer dollars toward public transportation & to penalize individual vehicle ownership seem to have convinced those that do not cherish individual freedoms. I believe this trend will continue despite my efforts to embrace American vehicle ownership.