Mike Shedlock thinks the plunge in car sales across Europe means they are going to have a nasty recession. These European dumbasses need to get a clue and learn from America. We’ve got our act together. Car sales are surging in the U.S. Why don’t these morons follow our lead? It’s so simple:
- Provide government tax credits to people making $174,000 per year so they’ll buy exploding electric cars
- Have the Federal Reserve provide money to Ally Bank, Ford Credit, Chrysler Financial and all the Wall Street banks at 0%, so they can make car loans to anyone who can fog a mirror and sign an X on a loan document.
- Your car companies can make 7 year loans at 0% interest to move that inventory.
- Your car companies can make 45% of those loans to subprime borrowers (aka people who can’t afford to buy a car).
- When things slow down, you can just stuff the cars into your dealers and record them as sales.
- No matter what you do, make sure 80% of your sales are trucks, SUVs and assorted other gas guzzlers as gasoline prices push past $4.00.
- Run cool advertisements with Dirty Harry showing how awesome and brilliant you are for having the taxpayers bail you out.
- Lastly, don’t be bashful about squealing for another bailout when the whole fucking thing blows up in your face – again.
It’s so simple. Why can’t the dumbass Europeans just learn from us? They’ll never learn.
- Portugal -47.4%
- France -20.7%
- Italy -16.9%
- Belgium -16%
- Cyprus -17%
- Greece -13.3%
- Germany -.4%
- UK unchanged
- Spain +2.5%
- Ireland +1.5%
Renault Leads European Car-Sales Drop With Fiat, Peugeot as Growth Stalls
Renault SA (RNO), Fiat SpA (F) and PSA Peugeot Citroen (UG) led the biggest decline in European car sales since June as consumers balked at making big purchases after the region’s economy shrunk.
Registrations in January fell 6.6 percent to 1 million vehicles, marking the fourth consecutive monthly decline, Brussels-based European Automobile Manufacturers’ Association, or ACEA, said today in a statement.
Sales in France, the region’s second-biggest market after Germany, plunged 21 percent, while deliveries in Italy, the third-largest market, slumped 17 percent. Gross domestic product in the 17-nation of euro area fell 0.3 percent in the fourth quarter, the first drop since the second quarter of 2009.
“Carmakers too dependent on small cars and their national markets, as the French ones and Fiat, are suffering the most,” said Ian Fletcher, a London-based analyst with IHS Automotive. “They are basically trying to keep their heads out of the water.”
Fiat, whose mass-market brands lost about 500 million euros in the region last year, is looking for a partner in Europe to cut costs and share technology as it doesn’t see a recovery in the market before 2014. Fiat’s European sales dropped 16 percent to 69,479 autos.
Fiat Chief Executive Officer Sergio Marchionne, who shut down a factory in Sicily at the end of last year, expects the Italian market to fall to the lowest since 1985 this year.
“We need to remove the fact that we’ve got the mass car market in Europe, which is economically unproductive and which, just in raw, pure economic analysis, does not deserve capital allocation of any kind,” Marchionne said on a conference call with analysts Feb. 1.
Renault’s registrations dropped 25 percent to 82,724 cars. The company, based in the Paris suburb of Boulogne-Billancourt, today reported a decline in earnings before interest, taxes and one-time items to 1.09 billion euros ($1.42 billion) from 1.1 billion euros a year earlier.
General Motors Co. (GM) posted a 14 percent decline to 73,376 vehicles, as a 21 percent decline for the Opel and Vauxhall brands more than offset a 27 percent gain for Chevrolet.
Buckle up for a massive recession in Europe because one is coming.
Mike “Mish” Shedlock