European Car Inventory flocked to China ~ car loan

 

In Europe, the car manufacturers are faced with the worst slump in 20 years. Humid, the inventory, but inventory is to find ways to discharge and China is becoming the ideal market to "throw" down the car can not be sold.
According to data from the Association of European Automobile Manufacturers (ACEA), car sales volume in this market during the month 2/2013 only 829 359 units, down 10.2% over the same period, the lowest in over 23 years. Earlier, the organization has announced the new car sales of 12.5 million units in 2012, down 7.8% over the same period. This is the lowest level of consumption over the past 17 years, and 7.8% figure is also the largest deficit reduction over the past two decades.
Although business conditions for the month 4/2013 in the latest report published on 18/5 of ACEA has improved, reaching 1.08 million units (up 1.8%). However, the Industry Council based in Brussels said that the European car demand is expected to further narrow (about 3-5%) this year by the number of new car registrations were reduced to 918 280 vehicles, a record low since 1990. In the first four months of 2013, vehicle sales in Europe decreased by 7% compared to the same period in 2012.
Before seeing difficulties, BMW CEO Norbert Reithofer predicted that Europe will need at least 5 more years to overcome the crisis. "I do not think it's a highly pessimistic identified by the fact that the business environment in this increasingly uncertain and loss of stability, so it is difficult to recover in the short term" he said Norbert stressed.

Therefore, since the second half of 2012, many car manufacturers have found Europe to China - the 2nd largest economy in the world - as a solution to disposal of large amounts of their vehicle inventories.
Volkswagen CEO Martin Winterkorn said the company has boosted exports to China to avoid inventory is increasing. It plans to export 200,000 units in China in 2013, double the amount of cars on the market in 2012. In 2011, the German automaker accounted for nearly 16% market share with sales volume hits 2 million vehicles.
Meanwhile, BMW announced it would pour $ 1.4 billion to invest in China to build additional categories for its plants located in the capital city of Liaoning Province Shenyang.
As for Volvo, the Swedish auto maker said it will double the number of distributors in this car to compete with Audi and BMW. Accordingly, Volvo will likely add 10 new models in this market over the next six years, including larger vehicles and more advanced, along with small and medium-sized cars such as V40 hatchback.
The fact is that the European automobile manufacturers increasingly "concerned" over to the Chinese market, where demand for cars increase every year and much less to solve "heavy burden" of economic crisis in the region.