NEWS | Wednesday, 09 March 2008

Italy also suffers from automobile crunch

Worst sales since the 1993 crisis

The local automobile industry finds consolation in its nearest neighbouring industry as Bologna analysts Centro Studi Promotor revealed in a study that Italy has witnessed the worst month in vehicle sales since the 1993 financial crisis.
Across the 20 regions, new vehicle sales slumped by 18.76 per cent in February and March, when compared to the same months last year. While compared to March 2007, sales of second hand vehicles fell by 6.08 per cent last month.
As the Fiat group now decreased its Italian market share by less than one per cent, the worst shock was for Ford, who in March lost 31 per cent of its sales when compared to the same month last year. Only a handful of city cars showed positive trends, like the Smart car, which exceptionally grew by 138.44 per cent last month, when compared to sales in March 2007.
Analysts recall that records of automobile sales in January were already sending signals of what was about to happen, and that demand has plummeted so much now due to a snowball effect the industry has been witnessing throughout the first quarter. Over and above, Centro Studi Promotor underlines that the two extra bank holidays in Italy last March may have also affected vehicle sales in general. Upcoming elections in Italy have also contributed to discourage consumers from purchasing durable assets.
Furthermore, the report deduces that the automobile market is on the decrease anyway, and complemented with all other factors, sales drops were worse than usual in the past weeks.
The report also states that 2007 witnessed a record in vehicle registrations, and that a reduced demand now a “physiological reaction”.