Skip to comments.EU: French economy buckles as car sales collapse
Posted on 12/03/2012 5:24:29 PM PST by bruinbirdman
Frances industrial woes deepened last month as car sales crashed 19pc and French brands lost market share at an dramatic pace, raising fears of a serious economic crisis next year once austerity hits.
Markits purchasing managers index (PMI) for French manufacturing remained stuck in slump in November at 44.5 and is now the weakest in the eurozone after Greece.
"The figures are shocking," said sovereign debt strategist Nicholas Spiro. "France has been sailing dangerously close to the wind for some time but is now tipping into outright contraction."
The Committee of French Automobile Producers said this has been the worst year for French car industry since 1997 - and for almost half a century in total volume - with little chance of recovery next year as Paris pushes through scorched-earth fiscal tightening of 2pc of GDP to meet EU deficit targets.
Sales of French cars fell 28pc in November from a year earlier, with Citroen down 26pc and state-owned Renault down 33pc. Foreign brands fell just 7.9pc. "The middle class, which tends to buy standard French cars of between 10,000 and 20,000, has been particularly badly hit by the crisis," said the CFFA.
The severity of decline stunned analysts and suggests that France has at last been engulfed by the festering crisis across the Mediterranean region.
The country has been bouncing along at near zero growth for a year and half but has managed to keep out of technical recession, partly because it has been cocooned by a Leviathan state and has put off hard decisions.
The economy seems to have buckled abruptly over the Autumn, sheding more than 40,000 jobs a month. Unemployment has risen to a euro-era high of 10.7pc.
The French car industry is still a pillar of the economy, employing 400,000 workers,
(Excerpt) Read more at telegraph.co.uk ...
Well hell, just bail em out.
It worked here so well.
The solution is increase taxes, right?
Just tax the rich some more and subsidize the car purchases.
Problem solved, right?
They decided to hand over their country to full-bore socialists; what did they expect?
“put off hard decisions” !!!
That has worked here. Why is is not working there?
"I thought I parked it over here. You know I was just saying to my wife the other day, I think I mentioned that she drives the new car, but we haven't been able to come up with a down payment for a new one for me...."
"Aw heck, I'm sorry to bother you, just one more question:"
The socialists in Europe did all they could to put off their crash until Obama won reelection. Now their “comrade” can use our money to bail them out.
If this plays out the way I thi k it will either the messiah will be dictator for life or in prison.
15-30,000 bucks for a car that looks worse than a 1940 Volkswagon Beetle. Yeah, France is in trouble all right.
Why is it that National Socialist’s always make such Buttugly cars?
I know, it’s more of that “espoir et changement”, right?
Just do as King obama.
Bailout out the car companies with billions in taxpayer money and give the car companies to the unions...
Those poor people. We’re doing so well, why don’t we just loan them our President for the next 4 years. He’ll fix it all up for them.
Isn’t it about the time of year that the so called Asian Yout’s do their annual CarBQ?
How do you say, “Cash for Clunkers” in Frog?
But would that not just continually recycle the cars they make?
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