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.