The first few months this year, European car sales has been in growing, some analysts predict this year the European market sales growth of 2.5% ~ 3.5%. By rights, is a good news for auto parts manufacturers.
However, most European auto parts suppliers, is not optimistic. European suppliers in big business scale, including Bosch, TRW, Continental, Faurecia and Sweden company to maintain its forecast for the European market sales earlier this year, the annual growth of 1% ~ 2%. Continental chief financial officer, Wolfgang, said: “this year, the European car sales is better than many expected. But from the point of our understanding of the customer, the current management state is similar to the second half of last year, we expect this year, the European car sales only grew by 1%.” The company expects this year’s sales of 35 billion euros, slightly higher than last year. Wolfgang said: “the southern European countries economic is still downturn, we are not going to improve the forecast sales in European market.” Bosch related principal has the same European auto market forecast with Wolfgang. Several auto parts suppliers executives recently said that despite signs of growth in Europe market, but is still a 20-year lows, weak market recovery. Johnson controls vice President of European companies Dave Jess said: “the European auto market’s recovery will surely promote the improvement of the supplier performance, the company’s revenue this year will be better than last year.” However, he stressed that, according to different customers, different regions of the business performance is also different, southern European buyers and production car manufacturers customers won’t have too big increase.
Some professionals expect, this year, 28 EU member states the economic growth is 1.5%. Some European countries economic situation remains difficult, such as Italy, the country’s economic growth this year is expected to less than 1%.
Wolfgang, also believes the suppliers that business relatively concentrated in the Russian market will be significantly affected. Tyre supplier Nokian recently lowered its profit forecast this year, the main tyre supplier factory is located in Russia, after the occurrence of the dispute between Russia and Ukraine, the quantity of goods is declining. Third party agencies prediction to the European market is shown slightly optimistic than a parts supplier. Auto analyst at deutsche bank, Getan Tomen prediction, European car sales growth of 3% this year. Auto parts suppliers, he thought, only after see more consumer confidence restored signal will change to the judgment of the situation this year. Consultancy partner in Munich, Germany, Oliver Vimana said: “the different suppliers will have different situation, it is difficult to give a general judgment. Globalization earlier supplier is affected by the European market is relatively obvious.” Moody’s, a rating agency, is expected to the European market sales growth of 2% this year. Moody’s vice President and senior analyst Oliver’s said: “the European auto parts supplier performance should be improved steadily.”
