LexFather

http://www.autocar.co.uk/News/NewsAr...llCars/245594/

New car sales for 2010 in Germany could plunge by as much as 25 per cent year-on-year now that the country's scrappage incentive scheme has run out.

Germany is Europe's largest economy and the largest European market for new car sales. Its scrappage scheme was the most generous in Europe, with almost £5 billion in government subsidies being paid out to owners of cars more than nine years old who were scrapping it for a new one.

Scrappage money officially ran out in Germany in September, but sales have continued to rise as cars ordered under the scheme continue to be delivered. But auto industry analyst VDA predicts that sales will begin to suffer in Germany next year when the effects of the scheme finally wear off.

"The domestic car market is going to be tough in 2010," VDA president Matthias Wissmann told a news conference in Germany. "Trees do not grow to the sky."

New car sales in Germany were up 20 per cent year on year for November, bringing the total number sold so far in 2009 to almost 3.6 million units, a rise of 25 per cent on 2008.

Wissmann did predict, however, that manufacturers selling in Germany wouldn't be left with large piles of unsold stock, as scrappage has ensured stock levels are very low and a waiting list is now in place on many popular models.

mmarshall

German carmakers, however, do not have to just sell cars in Germany to make a profit. VW, Audi, BMW, and Mercedes sell all over the globe. Audi, especially, has seen large sales increases recently in the U.S......and a lot of that profit goes back to the Ingolstadt headquarters in Germany.

4TehNguyen

iTrader: (1)

luxury car market is going to get a hit in general

IS-SV

Luxury car market has been taking a hit for several months already. And I agree the premium German car makers do a huge amount of non-domestic export business .

bitkahuna

iTrader: (20)

i wouldn't be so sure that audi makes ANY money in the u.s. with no plants here and sky high labor costs and a weak dollar.

mmarshall

Well, a few years ago years ago Audi moved TT production out of Germany to a cheaper plants in Hungary. And, while I am admittedly not an accountant or a buisnessman, it's hard to imagine Audi not making money on their cars at the prices they charge here in the U.S., although they, admittedly, use some VERY nice materials in the construction of some of their latest models...and those materials aren't cheap. Still, Audis, in general, cost good money....for a reason.

IS-SV

Audi's profits (or not) in the US at this point is pure speculation anyway, unless somebody shows us a geographical/regional P&L statement from their financials.

I8ABMR

German car sales set to collapse???? Man Japanese and American manufacturers are down. Take a number and get in line German car companies

IS-SV

Yes, it's called a recession, one of the worst of its kind.

bitkahuna

iTrader: (20)

true but the luxury car situation will be made worse by massive increases in taxation, not only at the federal level but coming at the state level too as so many states are broke and won't cut back spending.

and if this climate legislation happens... goodbye more wealth...

oohpapi44

iTrader: (1)

Isn't the article only talking about German car sales IN Germany and not the overall demise of the company itself.

Not sure where I see the difficulty.

No more scrappage funds means people can't receive a subsidy and therefore will be hanging onto their cars longer = lower sales of new cars.

Am I missing something from the equation or article?