GlobalAutoTV
Click to watch Franz Neumeyer -
Click to watch Franz Neumeyer -
euro resources


Need an office in Europe or Eastern Europe? Office suites, meeting rooms, virtual offices, network access




free downloads
EUROPE: "Taxation of international executives: Germany" guide

EUROPE: "Taxation of international executives: Germany" guide. 29-page guide by KPMG International.

proceed to download
eJournals





back to index backEUROtalk March,  2016


Autos: European Market on Stable Footing to Begin 2016 (report)

Western European sales expanded 6% in January, slightly ahead of our Q1 estimate for 5% growth. Growth was driven by Italy and Spain (+17% and +12%, respectively), as both markets remain 35-40% below their prior peaks. Production was flat in January as Western European growth (+5%) was diluted by double-digit declines in Eastern Europe. We expect European production to expand 3% in 2016 (Western Europe demand +5%) given solid GDP growth (+1-2%) and release of pent-up demand (registrations still 10-15% below prior peak).

- Western European sales rose 6% in January, slightly ahead of our estimate for 5% growth in Q1. The mid-/high-single-digit growth rate is consistent with the growth rate seen over the past two and a half years (demand up in 29 consecutive months). We expect Western Europe to expand 5% throughout 2016 given higher levels of GDP growth (+1-2%) and release of some pent-up demand (registrations still 10-15% below prior peak). Given Europe accounts for roughly one-third of suppliers revenue, this growth helps provide a solid backdrop for auto suppliers in 2016.

- Italy and Spain continue to lead the market higher. Italy expanded 17% in the month, roughly consistent with the growth seen in 2015 (+15%). Spain rose 12% in the month (versus full year 2015 sales growth +21%) as the country laps a difficult January and Q1 comp (+30-35%). While roughly half of the total Western European growth was driven by Italy and Spain, we believe the positive trend at Italy/Spain could continue given the significant upside (35-40%) to their prior peaks. Other major countries (Germany, France, UK) all grew 3-4% in the month.

- Premium brands grow solidly above the market. Demand at major premium brands expanded 11% in the month (500bps above the market) on strength at Mercedes (+15%).

- North America OEMs take share in January. Ford and GM expanded grew low double digits in the month, compared to several of the major domestic OEMs (VW/Renault) that were roughly flat.

- Production flat in the month, below our/consensus Q1 estimate up 2-3%.

- Positive production mix in Western Europe. Western Europe production expanded 5% in the month despite some softness in Germany (-2%) due to one lower workday in the month. Eastern European production declined 10% versus last year. Although weakness in Eastern Europe likely dilutes overall production growth, we expect this headwind to moderate as Russia demand (which accounts for 10-15% of the overall region) was stable/slightly improving as 2015 progressed.

To download 7-page report, please click here.

Source: BAIRD - GAI





previous page

go top
search our site


Loading

EUROtalk

Other articles from the same issue (March,  2016).

Would Brexit damage the British car industry?
play read on

The Automotive Electronics Industry in Germany 2016
play read on

A Foreigner With No Friends: Bo Andersson Pushed From Russia's AvtoVAZ
play read on

Autos: European Market on Stable Footing to Begin 2016 (report)
play read on

Italy overtakes France to become Europe’s third-largest new car market
play read on

3 Major Takeaways From the Geneva Auto Show
play read on

Russia: MinPromTorg issues 2016 luxury car tax list
play read on

What is the European Truck Platooning Challenge?
play read on

EU border controls - the economic impact
play read on

Investment in Central and Eastern Europe
play read on

The Home for Business? Assessing the Competitiveness of the UK
play read on

The Machinery and Equipment Industry in Germany
play read on

UK Economic Outlook - March 2016
play read on

Eurozone boosts industrial production by 2.1%
play read on

Global Economic Crime Survey 2016: The UK
play read on

European logistics aims to navigate choppy waters
play read on

European Commission releases anti-tax-avoidance package – practical takeaways
play read on

New National Living Wage greeted with cautious optimism by UK businesses
play read on

PwC’s 19th Annual Global CEO Survey: Russia
play read on

European Industrial Property Market “Positive For 2016” Says Report
play read on

European Private Equity Outlook 2016
play read on

Doing Business in the Netherlands 2016
play read on

Poland: Grants to support projects related to the development of products and technology (R&D)
play read on

Poland: Ministry of Finance looks closely at transfer pricing
play read on

Seeing risks and managing risks in UK leases
play read on

Belgium: New Retirement Plan Rules Have Immediate Implications for Employers
play read on

How U.S. Employee Benefits Compare To Europe's
play read on

New research framework for German microelectronics
play read on

Germans not travel-weary, but cautious
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120