Car Production Declines After Recovery

Car production in the EU is declining following a brief recovery period after 2009 lows.
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Car Production Declines After Recovery
An employee works on a Kia Sportage car at the Kia Motors Slovakia factory in Teplicka nad Vahom on June 29. Car production in the EU is declining following a brief recovery period after 2009 lows. (Eduard Genserek/Getty Images)
7/12/2010
Updated:
10/1/2015

<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/102519395.jpg" alt="An employee works on a Kia Sportage car at the Kia Motors Slovakia factory in Teplicka nad Vahom on June 29. Car production in the EU is declining following a brief recovery period after 2009 lows. (Eduard Genserek/Getty Images)" title="An employee works on a Kia Sportage car at the Kia Motors Slovakia factory in Teplicka nad Vahom on June 29. Car production in the EU is declining following a brief recovery period after 2009 lows. (Eduard Genserek/Getty Images)" width="320" class="size-medium wp-image-1817468"/></a>
An employee works on a Kia Sportage car at the Kia Motors Slovakia factory in Teplicka nad Vahom on June 29. Car production in the EU is declining following a brief recovery period after 2009 lows. (Eduard Genserek/Getty Images)
Car production in the EU is declining following a brief recovery period after 2009 lows as temporary government scrapping incentives put in place during the crisis expire, according to a report by the European auto industry’s trade association (ACEA). A total of 14 EU countries implemented incentive schemes, which spurred the sales of new passenger cars at the end of 2009, the high rate continued in the first quarter of 2010, until April when a 7.4 decline was reported.

The negative trend persisted in May declining to a further 9.3 percent. According to ACEA, the negative trend reflects on the effects of the fading support schemes as well as the challenging economic situation in the EU. The outlook for the automobile industry as a whole has causes for concern. The situation for commercial vehicles is worse. Truck production in the first quarter is down by 63 percent, compared to the corresponding pre-crisis period in 2008.