Rating Firms Forecast Falling Car Sales, Rising Overcapacity for Europe Next Year

Rating Firms Forecast Falling Car Sales, Rising Overcapacity for Europe Next Year

PARIS – Europe’s car sales, down 0.9% through October, are expected to fall another 3%-5% in 2012, and emerging markets won’t grow fast enough to buffer the shock, a leading French insurance-rating company says.

Overcapacity in Europe could hit 20%-25% next year, the firm Euler Hermes predicts. At that level, according to a general rule of thumb, profitability is ...