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European 2007 Auto Production +5.3% On Yr At 19.7M

Feb 20, 2008 Market Outlook

European 2007 Auto Production +5.3% On Yr At 19.7M

Last Update: 2/20/2008 7:08:05 AM

Edited Press Release

FRANKFURT (Dow Jones)–The contribution of the motor vehicle industry to economic
growth in Europe has been positive through 2007 as automotive production was up
5.3% on the year and reached 19.7 million cars, the European Automobile
Manufacturers Association, or ACEA, said Wednesday.

However, automotive industry demand forecasts point to stagnating car
registrations in 2008. New member states are likely to improve their 2007 result
at a somewhat slower pace, up 9% on the year, while Western European market will
possibly slightly deteriorate by 0.6%.

Of the main markets, only France and Germany are expected to register more cars
than last year. This will, however, not offset a decline in most of the remaining
Western European markets.

Over 80% of the 16 million cars registered in Europe in 2007 were produced by the
ACEA members.

Diesel powered cars accounted for 53% of total new car registrations in the
European Union. Demand is likely to remain stable in the current year.

ACEA said the European automotive industry is key to the strength and
competitiveness of Europe. The car industry provides jobs to more than 2.3
million people and indirectly to another 10 million in the Europe. Europe is the
world’s largest vehicle producer. Of the 50 million cars produced globally, one
third is manufactured in the EU.

Passenger cars accounted for 87% of the European production in 2007, an increase
of 5.5% compared to 2006.

A particularly solid growth was noted in the truck sector, up 15% opn the year,
thanks to a booming demand on the European markets. The production of light
commercial vehicles went up 2% on the year, whereas the production of buses
declined by 24%.

New EU member states posted a 25% growth in automotive production and accounted
for 15% of total EU motor vehicle production and 17% of passenger car production
by the end of 2007.

Demand for new vehicles in Europe remained on an upward trend with a 1.8%
increase on the year in 2007, mainly thanks to mounting new passenger car
registrations in the new member states and a continuous boom on the European
commercial vehicle market.

Nearly 16 million new cars were registered, 92% of which in Western Europe.
Buyers’ confidence and the demand for new cars in Western Europe were restrained
by soaring oil prices, changes in taxes, the global credit crunch and declining
purchasing power.

In the new EU member states, where car density is still much lower, a steady
growth was recorded throughout the year with a 14% growth rate.

Thriving European and foreign demand for new commercial vehicles resulted in a
6.8% growth in truck registrations. The European market ended the year with 7.1%
more vans, 5.1% trucks over 3.5 tonnes and 4.4% more buses and coaches
registered.

(END) Dow Jones Newswires

February 20, 2008 07:08 ET (12:08 GMT)

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