1. A decrepit machine, especially an old car; a rattletrap.
2. A failure; a flop.
We will start by the recent evolution of European Car Sales in various European countries.
PASSENGER CARS: registrations down 7.7% in first quarter 2012- source ACEA
For the complete breakdown, by countries for March please check:
Evolution of Car sales in Spain from 1995 onwards - source Bloomberg/OECD:
Evolution of Car sales in Italy from 1995 onwards - source Bloomberg/OECD:
Evolution of Car sales in Portugal from 1995 onwards - source Bloomberg/OECD:
Evolution of Car sales in Ireland from 1995 onwards - source Bloomberg/OECD:
Evolution of Car sales in Greece, we could only go back to 1999 onwards - source Bloomberg/OECD:
We previously mentioned the uptick in car sales in Iceland for March (+101%).
Evolution of Car sales in Iceland from 1995 onwards - source Bloomberg/OECD:
Evolution of Car sales in France from 1995 onwards - source Bloomberg/OECD:
Austria, Cyprus, France, Germany, Italy, Luxembourg, Portugal, Romania, Slovakia, Spain.
The summary of the various "cash for clunkers" programs by countries can be found here:
Cash for Clunkers, Here and There - Bill Chameides, April 24th 2009.
Therefore it isn't really a surprise, looking at the performance of the Peugeot stock price, to see the share back to 1991 levels... - source Bloomberg:
On a Credit level, Moody's downgraded Peugeot's credit rating to junk status with a negative outlook, citing "severe deterioration" of its finances, General Motors recently bought more than 335 million dollars worth of shares of PSA Peugeot Citroen giving them a 7% stake in the French company. 10 years ago, GM did a similar deal with FIAT which eventually cost GM 2 billion dollars to get out of the tie up but that's another story...
Moving back to our "European clunker" story, it is important to look at the age segmentation of the European car markets by countries as a follow up on European car sales. Every year French consumer credit company CETELEM publishes a report relating to the trends in driving habits of youths. While the 2012 is not yet available, the 2011 makes some very interesting points:
Evolution of average kilometers per year since 2000 in selected European countries, (index basis 100 in 2000) - source BIPE, Enerdata, Insee:
Clearly the high level of youth unemployment in Europe is a BIG negative for the European car industry given, on average, according to CETELEM, the average age of a buyer of a "new car" is...50 years old.
Average age of a buyer of a new car in Europe in 2009 by countries - source BIPE
Here is the structure of the European market in 2009 per age brackets - source BIPE:
More interestingly in the CETELEM market survey, in countries such as Spain and Italy, the proportion of buyers of new cars below 30 years of age has been higher than in France or Germany in percentage terms - source BIPE: