Car sector still in difficulty in 2010. - A report from French insurance-credit company Coface, devoted to the car sector worldwide, reveals that the industry will continue to face difficulty in 2010. A worsening is expected for the second half of the year and forecasts for the future are anything but clear, the specialists say. In this context, mergers, the purchase of assets and social plans are inevitable among auto parts manufacturers. Following a fall of over 13% in 2009, global car production (private and commercial) is expected to rebound by more than 12% in 2010 (64.3 million units). Overall, the sector is likely to return roughly to its pre-crisis production levels. Prospects for the main geographical zones vary, however, since, unsurprisingly, production in China, which shot up in 2009 (+47%) will record growth of 12% in 2010 and South-East Asia, which held up well during the crisis, maintaining its levels, will move into growth once again (+25%). North American factories, also on the up (+34%) will make up for last year's collapse. Production has grown significantly since summer 2009 to respond to the rise in orders, households anticipating the end of or a reduction in the schemes put in place in many industrialised and emerging countries to encourage the sale of more energy-efficient vehicles. The sector fears that, if these schemes are not continued, sales will fall back in the second half of the year, perhaps even the second quarter, particularly in those economies where household indebtedness is high, savings low and hire purchase for cars still rare (United States, United Kingdom and Russia). Sales are expected to rise in the emerging zones, though less spectacularly. Despite the closure of several sites in North America and, to a lesser extent, in Europe, overcapacity will remain for manufacturers and parts makers. Global overcapacity in 2010 is estimated to be almost 30% of production. The increase in sales will not be enough to reduce this surplus. (I.L./transl.rt)