Carmakers are canceling or postponing planned new cars because of the economic downturn.
Renault, Opel and BMW are among car companies stopping or delaying planned new models due to difficult economic conditions.
-- Renault has stopped work on a Megane-based crossover. It will delay the replacement of the Espace large minivan and a new top-of-the-line range to replace the Vel Satis.
-- General Motors Europe has put a planned range-topping car for its Opel and Vauxhall brands on hold and may not build an Opel small SUV that was supposed to be made at its Antwerp, Belgium, factory.
-- BMW has axed its planned X7 premium SUV. The model was to be aimed at rivals such as the Land Rover Range Rover.
Industry insiders also say Volvo has stopped work on new variants of its C30 hatchback and Fiat could reduce its model development program to meet tough financial targets.
New products are a key sales driver for automakers and analysts warn that cutting back or delaying new models could hit companies long-term sales.
This year, Toyota has seen its sales in Europe decline because it lacks new models. The carmakers European sales fell 12.3 percent to 444,822 units in the first half, according to ACEA. Last year, Renault CEO Carlos Ghosn blamed falling sales on a product trough.
Jürgen Pieper, an analyst at Germanys Bankhaus Metzler bank, said: Customers in Europe expect new models to be rolled out regularly. Thats why Europe has the broadest product spread in the industry.
Said Ferdinand Dudenhöffer, head of the Center for Automotive Research in Germany: If carmakers reduce product development, they will improve profitability for only a short time before customers demand more new products.