The recent turmoil in financial markets has hit hardest in the US. But its impact is beginning to be felt in Europe.
Not only are car buyers worried, they are also finding it harder to get credit.
Said Volker Borkowski, CEO of German dealer group AVAG Holding: “Consumers are looking at the economy and deciding not to buy a car.”
As a result, dealers’ profit margins are declining, wreaking further havoc on an automotive sector that is already in the middle of a major consolidation.