Europe’s car market is bottoming out after five years of falling demand, but high unemployment and weak bank lending suggest its recovery will be long and slow, executives at the Frankfurt auto show said.
Automakers have been hammered by Europe’s prolonged economic downturn, with sales falling sharply and profits suffering even more because of overcapacity.
Toyota looked set to retain its title as the world’s top-selling carmaker in the first half of 2013, company figures showed, outpacing General Motors and Volkswagen as it boosted overseas sales to a record high.
Europe’s decline in car sales is showing signs of bottoming out but heavy price competition among brands and dealers threatens to kill any sense of relief for automakers struggling with excess plant capacity.
