European Auto Stocks Sink
By Michelle Krebs October 1, 2008European automakers saw their stock prices fall sharply Wednesday as the U.S. credit crunch and economic downturn spreads overseas, Reuters news service reported.
Indications are that European consumers, like their American counterparts, are struggling to obtain car loans. Word spread that Daimler was about to issue a profit warning - a rumor denied by the German automaker. And Porsche's global sales and production report issued Wednesday showed the luxury market being hit by the global economic downturn.
In Europe, auto stocks dominated the list of blue-chip decliners, led by Daimler, Reuters reported. Daimler's share price continued to fall despite denying rumors of a profit warning, saying it would give its next outlook with third-quarter results on October 23.
Other leading European carmakers experiencing declines on Wednesday included: Volkswagen, down 3.4 percent; Porsche, down 10.5 percent; Fiat, down 3.8 percent; Renault, down 4.3 percent; and Peugeot, down 3.62 percent. Similarly, major European suppliers saw share prices decline as well; Michelin was down 5.9 percent and Continental AG was off 3.9 percent.
Like in the U.S., car sales in Europe are falling. In Spain, car sales fell 32 percent in September, marking the fifth straight month of decline, data reported by Reuters showed Wednesday. So far, France has bucked the European decline with sales up 8.4 percent in September, thanks to consumer tax breaks.
And the outlook is none to bright. Ford U.K. Chairman Roelant de Waard told Reuters Wednesday vehicle sales are likely to fall year-on-year in Britain in 2008 and 2009 unless something is done to improve the availability of consumer credit.
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