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VW, Renault Sales Suffer From New Fuel Economy Rules

VW, Renault Sales Suffer From New Fuel Economy Rules.

“still on a roller-coaster ride after new, tighter, fuel economy rules caused havoc”

Volkswagen, Renault, FCA’s Alfa Romeo and Nissan were Western Europe’s big losers in October while BMW and Daimler’s Mercedes bucked the trend.

The Western European market is still on a roller-coaster ride after new, tighter, fuel economy rules caused havoc after new rules kicked in on September 1.

Western Europe sales dived more than 20% in September after August’s almost 30% upward spike, but in October sales slid again, this time by a relatively modest 7%. Sales in August were boosted by carmakers offloading models that would have failed the new rules. Sales in September reflected manufacturers’ inability to make enough cars and SUVs to meet the new regime. October showed many manufacturers still haven’t returned to normal.

The new rules – Worldwide Harmonized Light Vehicle Test Procedure or WLTP – were intended to force automakers to be more honest about the fuel consumption of their vehicles.

According to data from the European Automobile Manufacturers Association, known by its French acronym ACEA, Volkswagen Group sales fell 23.9% in October to 200,046. Within the VW Group, Audi sales fell 54.1% to 29,207 and Porsche sales slid 66.1% to 1,715.

Other big losers included Renault, off 23.1% to 63,294, Alfa Romeo down 41.8% to 3,653, and Nissan – 26.5% down at 25,610.

BMW looked good with a 13.8% rise to 81,376 including Mini, and Mercedes managed a 7.7% gain to 72,457, according to ACEA.

After the latest figures, LMC Automotive slashed its Western Europe forecast for 2018 to a gain of 0.8%, after a month earlier predicting sales would rise 1.4% from last year’s 14.3 million.
LMC Automotive raised its forecast for 2019 a smidgeon to a 0.9% gain from the previous month’s 0.8% advance prediction.

Moody’s Investors Service predicts a 2% gain for Western Europe in 2018 and a slight rise of 0.5% for 2019.

Western Europe includes all the big markets like Germany, Britain, France, Italy and Spain.


 

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