Car sales in Spain will not recover in 2010

The Spanish car market, this year, will fall below 900,000 units and will not recover in 2010

Car sales in Spain will not recover in 2010

The Spanish car market, this year, will fall below 900,000 units and will not recover in 2010, in line with weakening demand in Europe, according to a report from Standard & Poor's released to the Press.

Following the decline of 28.1 percent in 2008 to 1.16 million units, the international agency predicts that the Spanish market this year will fall 26.4 percent, with sales reaching 855,000 units. The report does not foresee a recovery in 2010.
As regards the other major European markets, the agency warns that the end of the incentive programs in 2010 will cause a decline in registrations, which amounts to 32 per cent for Germany, at 4. 9 per cent in United Kingdom at 11.5 percent in France and 9.3 percent in Italy.

Estimates from Standard & Poor's is more positive in terms of the United States, where the agency believes that this year, car registrations fell by 25 per cent, to 9.9 million units, but will recover 13.1 percent in 2010, with 11.2 million vehicles sold.

The report warns that government support in the form of guarantees or loans, they are giving the car industry, will not solve the current problems in the sector but quite the opposite. "We believe that some forms of government support could make it less competitive for car manufacturers, in that it restricts its ability to support measures to restructure and reduce job cuts or plant closures," he warns.



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