But market power in Europe began a decline around 2001, when production figures fell considerably, although production that was most affected was trucking and coaches. This situation was blamed for the global crisis, which was a worrying situation. In the years leading up to the global crisis, Europe’s exports doubled, which was a trade surplus that was mainly supported by exports to the United States, Eastern European countries or central European countries, Asian countries had a trade deficit.
Over the years and somewhat bound by context, Europe has had to change its strategy and maintain good relations with America, but especially has intensified the business with Asia due to the many options it offers, and its character as a market with a projection for the future.
Fortunately for the sector in Europe the evolution in the last 3 years has been very favorable. In 2012 the situation was complicated with cases such as the Peugeot that laid off 8,000 employees and was also forced to close a factory, affecting its production capabilities. The complaint by the companies referred mainly to several points:
Lower sales, mainly caused by the economic recession and the decrease in purchasing power of the population.
Higher taxes, which reduces the profit margin of companies.
Excessive labor price.
If 2012 was tough, the following year did not offer an improvement as the fall in sales reached a very close to 5% compared to 2012 in Western Europe, mainly affecting southern European countries. Factories in Spain, France and Portugal reduced production capacity significantly, although the worst stop was Italy.
In the same year the Renault company was the most “brilliant” as it was able to alleviate the European recession in some way. The company’s first half-year fall of 1.9% was rewarded by sales in countries such as India or Russia. Renault saved the situation to some extent by opening up to external markets.
Still, 2013 was a fateful year because the European car industry reached the worst figures since 1993, down 6% from 2012. Highlights include Belgium and the United Kingdom.
In 2014 the tonic was somewhat different as the first rises in the sales level began to be observed. The eating of the year was already auguring some improvement when sales grew by 5.5% led by Ireland and Portugal which achieved growth of almost 40% as the margin for improvement was very wide.
As for the brands that led to this growth, it is worth highlighting Volkswagen that managed to grow by sales at two extremes: on the one hand high-end cars like Audi and on the other by more modest-range vehicles such as Skoda. Not only did Volkswagen participate in this growth, as Renault also took advantage thanks to lower ranges such as Dacia. To a lesser extent they grew PSA and Ford. The worst performing company was General Motors due to the sharp fall and ballast of its Opel brand.