European car sales hit 10-year high on SUVs

Bloomberg

European car sales reached a 10-year high in 2017 as widening economic growth boosted consumer confidence, with SUVs from French manufacturers Peugeot and Renault, Italian competitor Alfa Romeo and Japanese rival Toyota propelling demand.
Registrations in 2017 increased 3.3 percent to 15.6 million vehicles, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said in a statement. The figure was the highest since a record 16 million autos were delivered in 2007. December sales dropped 4.8 percent from a year earlier to 1.14 million vehicles, hurt by extra days off for Christmas versus the 2016 period.
The economy of the countries sharing the euro probably expanded at its fastest rate in a decade in 2017, according to European Central Bank estimates, and unemployment is at the lowest since 2009 across the region, including all-time lows in Germany and Poland. Sport utility vehicles gaining customers in 2017 included Renault SA’s Captur and the Logan MCV Stepway from the company’s Dacia division, as well as the newly introduced Peugeot 5008 and Citroen C3 Aircross from PSA Group and Alfa Romeo’s Stelvio.
The European car market’s growth is likely to slow in 2018, with Renault predicting a 1 percent gain and research company Evercore ISI foreseeing “flat” demand. Sales in the UK, which fell 5.7 percent in 2017, will probably remain a drag on the region’s figures amid car buyers’ uncertainty over how Britain’s pending exit from the European Union will affect household budget, LMC Automotive consulting company said in a report last month. Customers’ questions about the future of diesel technology will also hold back demand.
Among the top 10 car sellers in Europe, Toyota Motor Corp. posted the steepest increase in 2017, at 12 percent. The Japanese company said a week ago that European demand for its compact crossover RAV4 hybrid surged 31 percent in 2017. Renault’s group European sales rose 6.7 percent, helped by Dacia’s 12 percent gain. A 30 percent jump at Alfa Romeo contributed to a 5.2 percent increase at parent Fiat Chrysler Automobiles NV, whose main Fiat marque sold 4.5 percent more cars.
Group passenger-model sales by Volkswagen AG, Europe’s biggest automaker, rose 2.1 percent in 2017 as the Spanish division Seat introduced the Ateca and Arona SUVs in the region and the luxury Porsche marque refreshed its Cayenne model, making up for declines at the namesake VW brand and Audi premium unit.
The German company published figures separately Wednesday showing its global sales rose 4.3 percent to a record 10.7 million cars, trucks and buses, putting it on track to protect its No. 1 worldwide industry ranking.
European sales at Daimler AG’s Mercedes-Benz division, the world’s biggest luxury-car maker, jumped 6.4 percent on demand for SUVs like the GLC coupe as well as the latest version of the brand’s E-Class sedan. Competitor BMW AG’s namesake marque lagged behind with a 0.5 percent gain in European registrations as customers awaited rollouts of the all-new X2 crossover and full-size X7 SUV and overhauled models including the 5-Series sedan.
The ACEA reports figures from the 28 EU countries, excluding Malta, as well as Switzerland, Norway and Iceland.

VW to defend global sales crown amid $21bn diesel hit
Bloomberg

Volkswagen AG’s global deliveries rose to a fresh record last year as robust customer demand helped the German manufacturer weather the financial fallout from its diesel-emissions crisis and stay ahead of Japanese rival Toyota Motor Corp.
Worldwide sales of the group’s cars, trucks and buses jumped 4.3 percent to 10.7 million vehicles in 2017, VW said.
“We are grateful to our customers for their trust,” Chief Executive Officer Matthias Mueller said. “We will continue to do everything we can in 2018 to meet and exceed the expectations of our customers all over the world,” he said. Toyota has forecast about 10.4 million vehicles sales for 2017 and is scheduled to release the final number later this month.
A strong presence in China and a slew of new sport-utility vehicles like the VW Tiguan and the Skoda Kodiaq helped cushion an unprecedented cash outflow of about $21 billion in 2017. The undiminished popularity of its vehicles is vital to generating the funds Volkswagen needs to emerge from the crisis while it also makes hefty investments in new technologies such as electric and self-driving cars.
The Wolfsburg-based company, whose stable of 12 automotive brands includes Porsche sports cars, Scania heavy-duty trucks and Ducati motorbikes, will seek to sustain sales momentum this year with models including an updated version of the VW Touareg SUV, the new Virtus in South America and a large SUV added to the lineup of its Spanish Seat nameplate.
The Audi division, VW’s largest earnings contributor, will roll out its first all-electric model, dubbed E-tron, and the new Q8 flagship SUV.