Arab Today, arab today paris car show russia brazil markets slamming on the brakes
Last Updated : GMT 02:14:22
Arab Today, arab today
Arab Today, arab today

Paris car show: Russia, Brazil markets slamming on the brakes

Arab Today, arab today

Arab Today, arab today Paris car show: Russia, Brazil markets slamming on the brakes

Paris car show
Paris - AFP

Once seen as the promised land for major car sales, emerging markets such as Russia and Brazil have hit the skids in recent months, analysts said as the Paris motor show opened Thursday.
While the glitz and glamour of the latest car technology and showy legends like the Ford Mustang drew the crowds, some manufacturers were fretting about the collapse of emerging markets seen until recently as an El Dorado compared to a saturated and depressed European market.
The situation in Russia, hit hard by sanctions over the Ukraine crisis, sparked particular concerns.
Sales of new cars in Russia have tanked, down 25.8 percent in August after 22.9 percent in July and several Western brands have seen production slide dramatically.
Renault-Nissan, which recently took control of the main Russian manufacturer Avtovaz, has suffered a fall of nearly one third in its Lada sales.
Europe's biggest carmaker Volkswagen was forced to freeze its production of Skodas in September, and Opel has cut one third of staff at its St Petersburg factory.
Ford Europe boss Stephen Odell said they had slashed staff numbers by 1,500 since January.
"The situation in Russia has deteriorated beyond our projections. But the Russian market, at its current rate, is still equivalent to the British market" in terms of volume, said Odell.
Nevertheless, he warned: "Most observers were predicting a Russian sector of more than three million units, maybe 3.3 million and in fact, it will be around a million units less."
European car manufacturers flocked to Russia as a source of fast expansion -- meaning that after several years of spectacular growth, it was the second biggest car market in Europe after Germany.
- 'Extremely difficult context' -
Experts pointed to a similar situation in Latin America -- but for different reasons.
In Brazil, seen as a promising market for major car brands given a rapidly rising middle class, an economic downturn has resulted in a crash in new car sales.
In the first half of the year, sales were down 7.6 percent and exports down a full 35 percent, forcing big players like Fiat, Ford and General Motors to put staff on temporary leave.
"New car registration will drop 10 percent this year. It's an extremely difficult context" in Brazil, noted Yann Lacroix, an automotive expert at Euler Hermes.
The situation is worse in neighbouring Argentina, whose car market is expected to decline by a whopping 30 percent this year in the midst of a crippling downturn.
However, some experts put the recent fluctuations down to volatility expected in immature markets.
Whether in Russia or Brazil, "we think that these countries have growth potential that will remain intact," said Francois Jaumain from the consultancy Price Waterhouse Coopers.
Renault-Nissan boss Carlos Ghosn was similarly bullish on his native Brazil.
"I have no doubt that growth in the Brazilian market will take off because fundamentally, Brazil is far below its potential," said Ghosn.
Nevertheless, he did acknowledge in an interview on French television that "Brazil and Russia are in difficulty", while China remains the biggest growth market with a predicted 7.5 percent growth in 2014.
Meanwhile, the home market for many of these manufacturers -- Europe -- might be staging a gradual comeback after several years of pain.
"Europe is restarting. It's slow and it's not very, very significant. We're talking about three or four percent growth in 2014," said Ghosn.
However, he hailed this as "good news because this market hasn't stopped falling since 2007. We have had five years of decline and we are between 20 and 23 percent below the 2007 level."
The Paris motor show opened Thursday to industry professionals and will throw open its door to the wider public on Saturday.
A total of 71 constructors will be showcasing the best they have to offer, with 260 brands on display over an eye-popping 125,000 square metres of exhibition space.
Organisers hope to attract one million people before it closes on October 19.

 

arabstoday
arabstoday

GMT 21:21 2017 Thursday ,19 October

Shaikh Nasser praises BIDEC 2017 royal patronage

GMT 20:39 2017 Thursday ,19 October

Tesla fired hundreds of employees in past week

GMT 13:46 2017 Thursday ,19 October

Samsung's revamped Bixby takes on Amazon Alexa

GMT 21:35 2017 Wednesday ,18 October

King congratulated by Premier on BIDEC success

GMT 21:27 2017 Wednesday ,18 October

Shaikh Nasser praises Derasat efforts

GMT 11:54 2017 Wednesday ,18 October

Airbnb rentals boom across Africa

GMT 18:06 2017 Tuesday ,17 October

Three companies offering to search for MH370

GMT 19:24 2017 Sunday ,15 October

Royal Jordanian eyes operating profit this year
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today paris car show russia brazil markets slamming on the brakes Arab Today, arab today paris car show russia brazil markets slamming on the brakes

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today paris car show russia brazil markets slamming on the brakes Arab Today, arab today paris car show russia brazil markets slamming on the brakes

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday