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Fiat Bmw Vantage First Europe 5-month Sales Gain
As drifting demand in Romania and Poland spurred the rise in Germany Fiat SpA and Bayerische Motoren Werke AG led the first increase in European car sales in five months.
The Brusselsbased European Automobile Manufacturers Association said July 13 that in June new car registrations rose 0.7 percent to 1.54 million vehicles from 1.53 million a year earlier. With 8.51 million vehicles firsthalf sales dropped 0.2 percent.
Based in Turin Italy Fiat increased sales 9.9 percent to 119130 vehicles. On the other hand BMW the world’s largest maker of luxury cars built up purchases 6.9 percent to 83594. As economic expansion stimulates consumer spending sales in Eastern Europe increased. In Germany a sales tax increase hurdle potential buyers.
Horst Schneider an analyst at WestLB in Dusseldorf said that the European market has a very mixed picture. He added that Germany is still suffering from the drag effect on demand that happened last year before the tax was hiked. He also said that there will be no change in demand until next year.
In Milan shares of Fiat fell 22 cents or 0.9 percent to 23.49 euros. The stock has more than doubled as compared to the figures last year. BMW 2800 parts maker and Munichbased BMW rose 23 cents or 0.5 percent to 48.89 euros. It has gained 27 percent for the previous year.
In June Fiat’s market share raised to 7.7 percent from 7.1 percent a year earlier on deliveries of the new Bravo compact which was available in February as well as the Grande Punto and Panda models. This year Fiat sales have gained 7.2 percent and the company has hiked European sales for 18 consecutive months.
BMW Chief Executive Officer Norbert Reithofer said in February that he expects pretax profit to increase in 2007 spurred by new versions of the Mini small car which started its availability in November the 1Series car and sportutility vehicles. BMW’s market share increased to 5.4 percent last month from 5.1 percent.
Eastern European sales jumped 21 percent higher last month while western European registrations declined 0.6 percent. Sales in Romania flowed 56 percent to 32679 vehicles while Poland earned a gain of 23 percent to 25809 units. German sales decreased 7 percent to 301108 vehicles.
The government in Poland Eastern Europe’s largest economy forecasts growth this year of 6.5 percent. Due to an increase in sales tax to 19 percent from 16 percent at the start of the year the German carmakers association forecast in July 3 that 2007 sales will jump 7.8 percent down to 3.2 million vehicles.
About the writer: Hailey Kerr is a Business Administration graduate. She is currently part of a business consulting firm in Massachusetts. Hailey loves to write and enjoys doing her favorite hobby during her free time cooking French cuisines.
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