General Motor’s (NYSE:GM) descending sales in Europe continue

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By Hanson So on October 18, 2014 Automobile

The recession in Europe has had a deep impact on the businesses, and many companies are still trying to recover from the loss they faced during the time. Car sales also went through a tough time, and in many countries the recession is not even over in terms of employments and gross domestic products. Although some improvement has been seen in the car sales, but one company that never recovered from the recession is the General Motors. (NYSE:GM). The company has been reporting losses year after year, even though; it is the number one car company in America.

The car registrations in September were slightly better. ACEA stated that, September was the 13^th month in a row in which the EU market for new passenger cars expanded, totalling up to 1,235,501 units. A significant growth was seen in all the major markets. Spain saw a growth of +26.2%, France +6.3%, UK +5.6%, Germany +5.2% and Italy saw the growth of +6.4% across Europe.

The growth rate of the largest car company of Europe was reported to be slightly better than the market’s growth rate. The sales of Volkswagen (OTC: VLKAF) rose 6.7% to 290,524. It occupies 23.5% of the market. In comparison to the US market, the Volkswagen (OTC: VLKAF) is well above the US leader General Motors (NYSE:GM) which occupies 17.9%. 127,366 cars were registered by PSA group which is at number 2 in Europe. The number of cars registered by PSA was 9.8% higher than the cars registered in September last year. Followed by PSA is Renault group which rose 10.7% to 103,417. The registrations made by Ford Motors Co. (NYSE:F) exceeded the registrations made by General Motors (NYSE:GM) and its numbers grew 6.7% to 101,399. The registrations made by General Motors (NYSE:GM) went down 5.9% to 92,578. Because of the lower number of registrations made by the General Motors (NYSE:GM), the company’s shares declined to 7.5% in September this year. Last year in September General Motors (NYSE:GM) shares were 8.5%.

A few weeks ago, the management at General Motors (NYSE:GM) confessed that it expected to generate profits in Europe, in the year 2016. However, it is pointless to make any sort of forecasts this early in time. Market trends and businesses change every day. What is popular today can lose customers tomorrow and General Motors (NYSE:GM) is not doing exceptionally well. The company has a rough road ahead of it because of its consistently declining sales in Europe.

General Motors (NYSE:GM) will not only have to increase its sales to meet its 2016 target, but will also have to make its mark in the increasingly competitive market. There are so many other car companies that are doing well in the European region, and for General Motors (NYSE:GM) to hold its ground in their presence will not be an easy task. Considering the ever changing trends in the market, it remains to be seen if GM (NYSE:GM) will succeed in bringing in profits it hopes to generate in Europe.