Credit crunch hitting car manufacturers
Motor trades
6th October 2008
While the annual Paris Motor Show is a chance for consumers to get a peek at the latest vehicles and concepts they can shell out on in the near future, the ongoing credit crunch is topping the agenda at this year's event.
Continuing economic turmoil and trouble in the banking system has hit car manufacturers along with the rest of the economy, Headlineauto said.
Alan Mulally, chief executive officer of Ford, said: "2009 is not going to be better than 2008. We won't see a recovery until 2010."
He added the downturn will be deeper and longer than predicted last year, with the economic problems becoming global in scale requiring international cooperation to return stability to the worldwide financial system.
Norbert Reithofer, head of BMW, echoed this view, predicting car sales would not recover until the middle of 2009 at the earliest.
Recent research from esure reveals the UK is set to become a nation of one-car households, as motorists struggle with rising running costs.
