Tuesday, 8 April 2008
Autor Sector Down, Trend Continues...
"In March 2008 a total of 20,749 new motor vehicles were registered, of which 14,382 were automobiles. First registrations decreased by 14.7 per cent from the corresponding month of the previous year. In March the number of new passenger cars registered was 12,558, which was 1.4 per cent down from the year before."
So even after trying to bail out the auto sector in Finland (through "tax" subsidies), the auto sector continues on its downward trend.
January and February high figures are just reflecting the shift of consumption from the November-December period. This lead to a chaotic statistical trend that most probably will break any forecasting model if they don't take into account the government intervention. The same phenomenon will happen end of the year as the figure won't mean anything: a statistical mess.
I think it's clear that as long as they don't align prices with continental Europe, the downward trend will continue... Taxation reforms should be directed toward the consumer not toward the car reseller.
The general consumption is deteriorating amid high level of debt and rising inflation on products such as food and oil.