European Economy Effects More Manufacturers!

French Brands sales fall along with the rest of Europe

Another Manufacturer feels the pinch as car sales decline for both Peugeot and Citroen. Peugeot and Citroen are now as one and have declared a decrease in sales of 16.5% for 2012.

The state of the current economic climate in Europe has affected many mass market manufacturers such as themselves and Fiat amongst others. Most manufacturers have seen a decrease in sales in Europe and in particular Southern Europe with Fiat being the manufacturer who lost the most in 2012 as sales continued to plummet throughout the year.

Peugeot Citroen have announced that sales in Spain were down a massive 14.9% alone last year and in Italy they dropped by 20.9%. In the home country of France sales were also down by 13.3%.

Peugeot Citroen announced sales figures of 2.97million models globally in 2012 which is down by a significant figure compared to 2011, of in which they sold 3.55 million cars. Ford who have seen a record year in terms of sales and profits have also had a hard hitting year for sales in Europe as they look to close two production plants due to the lack of demand.

However, whilst there is lack of demand in Europe, both Ford and Peugeot Citroen recognised this and decided to target growing economies such as the US and China. Peugeot Citroen had an increas of 7.2% in China and in Russia they were up by 10.1%.

It is becoming increasingly popular to target other markets for the main market manufacturers as they look to dodge the effects of the economic downfall in Europe. Peugeot Citroen have been in the news lately for a reduction in a safety rating for certain models in the range. The Euro NCAP rating has been reduced from a 5 star rating to a 3 star rating as test specifications and requirements begin to change as research develops.