The Wall Street Journal-20080117-Europe-s New-Car Sales Likely to Fall
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Europe's New-Car Sales Likely to Fall
FRANKFURT -- European new-car registrations rose 1.1% to almost 16 million vehicles in 2007, but prospects for this year may be dented by tougher economic conditions globally.
Citing the danger of recession in the world's largest established car markets, Credit Suisse said in a research report it expects a 1.1% decline in new-car registrations in western Europe in 2008, "with our German growth expectation preventing a steeper decline." Such registrations are a proxy for new-car sales.
The European Automobile Manufacturers Association, or ACEA by its French acronym, said registrations of new vehicles increased to 15.96 million in 2007 from 15.78 million a year earlier.
"Soaring oil prices, changes in taxes, shrinking credit availability and purchasing power restrained buyers' confidence and the demand for new cars in some of the Western European countries," ACEA said.
