Issue 36, 2024 - This week's editorial: Poor car performance hurts global flats sales and prices

The third-quarter sale performance and prices of EU coils is suffering from the present slump in the European car industry. Italian passenger car production tumbled yet again in June and in the first half of the year, as noted from local carmakers association Associazione Nazionale Filiera Industria Automobilistica (Anfia) preliminary data.

Car output fell year-on-year by as much as 54.3% in June to 25,110 units, and by 32.2% on-year in January-June to 202,282 units. By comparison, German six-month output declined by 6% to 2 million units, and by 9% to 350,200 cars in June. The UK recorded a notable fall in June of 26.6% to 62,231 cars and a 7.6% decline to 416,074 units in January-June. Spain’s June car production decreased by 7.2% to 175,580 cars and by 5% to 1m cars in January-June.

According to a Fim-Cisl union document, Stellantis' production in Italy during the first half of this year saw a significant decline of 25.2%, resulting in the manufacturing of 305,510 vehicles.

German car producer Volkswagen (VW) is mulling the unprecedented option of closing some factories in Germany. “The economic situation has become even more difficult and new players are invading Europe," the company chief executive Oliver Blume says in an official statement. "Germany continues to decline as a business location in terms of competitiveness. In this environment, we as a company must now act decisively.”

From the board’s perspective, the brands within Volkswagen AG group must undergo comprehensive restructuring. The possible closure of plants in its home country would be a first in the 87-year history of the German automotive icon. Volkswagen is also losing momentum in its biggest market, China, with its EV models lagging far behind rivals, while cheaper Chinese cars are also entering Europe.

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