Having endured two long years of trouble and strife, crashing financial markets and global instability, it looks like the auto industry may well have survived the worst of it. After an unprecedented amount of support Detroit’s ‘Big Three’ appear to be back on track, recording impressive first quarter sales and signalling a significant bounce in the worldwide auto industry. Likewise in Europe, Volkswagen the continents biggest car and vans manufacturer has also posted impressive sales for the first quarter. Although sales in April have slowed, Volkswagen still managed to increase sales by 11.4% on the back of a 20.9% rise during the first quarter. With business improving across the continent, Volkswagen has implemented a number of concerted efforts aimed at increasing their control in the used van and van hire markets across Europe. The company has also announced its intention to invest over 1.5bn Euros into the Chinese car market.
Despite the apparent revival in the European car market there may still be troubles ahead for manufacturers as the Euro currency continues to stumble along like a blind drunk with one shoe. In the last few months financial crisis after crisis has rocked the Eurozone, causing huge amounts of consternation and instability across the markets. In an attempt to halt the Euro from sliding further, the EU and the IMF have agreed upon a 750bn Euro package to bolster Greece’s failing economy. There are also increasing fears that Portugal and Spain may also follow. With the Euro still at a four year low against the Dollar, many companies and manufacturers will struggle to secure suitable investments. The poor performance of the Euro will also hit consumers and sales, leading to production troubles for a variety of EU companies. As the crisis continues there are worrying signs that Greece may default on some of its international loans which may force the country and the continent to rethink its position on a single united currency.
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