European Union’s gradual emergence from the recession has affected the automobile industry as well. Car sales have started to grow in Europe; however General Motors Inc. is an exception. Amid the major car companies, GM is the only one that is still facing sales issues and hasn’t been able to come up with significant numbers for sales so far.
As per European Automobile Manufacturers Association, the registrations for the passenger cars in the European Union went up more than 6.5% in October as compared to last year. In the previous year 1,072,837 units were sold. The number of registration in October made it the 14th successful month in a row in terms of growth. However, the improvement is not stable because of the ongoing struggle in some of the economies.
Significant growth was seen over a year ago in majority of the markets
- Spain showed more than 26.1% growth
- UK showed more than 14.2% growth
- Italy showed more than 9.2% growth
- Germany sowed more than 3.7% growth
- The combined growth of all the markets went up to 6.5%
While most of the market showed increase in car sales, France showed a slight decline by -3.8%. These numbers were noted over a year ago in the month of October.
A comparison of last year’s October sales with this year’s October sales
Volkswagen, which is the biggest car company in Europe, showed 6.9% increase in sales to 276,816 this October. Last year during the same month its market shares declined from 25.8% to 25.7%. GM on the other hand has the biggest market share of around 18% in the U.S auto industry.
PSA Group, which is the owner of Peugeot, is the second biggest company in Europe. Its sales increased by 11% this October to 118,432. Its market share declined from 11.6% to 11.1%.
The 3rd rank goes to Renault Group whose sales went up by 10.5% to 107,449. Its market share increased from 9.6% to 10.0% this October as compared to the same month last year.
When compared most manufacturers saw growth in sales this October as compared to the sales that took place last year during the same month.
GM however, did not see growth in its sales. On top of that, its biggest rival Ford Motor Co. declared its sales statistics, which were decent. Although Ford’s market share declined from last year’s 7.3% to 7.1% this year its sales increased by 4.3% to 76,312.
In comparison GM’s sales decreased by 5.1% to 69,421. Its market share also went down from last year’s 7.3% to this year’s 6.5%. The fact that BMW sold almost as many vehicles as the U.S Company did emphasize GM’s troublesome situation. BMW’s sales went up 9.4% to 69,421.
According to Wall Street Journal things do not look too good for General Motors. Adam Opel AG, which is GM’s European unit, is on the verge of breaking and it seems highly improbable that the company will be able to reach its 2016 target. GM Chief Executive Mary Barra is likely to face the $1.3 billion cut out of General Motor’s first quarterly profit. Whether GM will be able to pull itself out of this pitfall or not is yet to be seen but things are not going in favor of the company so far.