European production recovers from its stall. The consultancy firm IHS also confirmed that the European automotive industry is starting to bounce back after several years of crisis. Annual production in the United Kingdom returned to its level before the 2007 crisis, Spanish production is now at its highest level for five years and the countries of Eastern Europe (Czech Republic, Slovakia and Hungary) are very much present. Although Europe is still suffering from overcapacity, this upturn is a positive thing, according to IHS. Firstly, it stems from an increase in sales of new cars, which rose by 5.7% in 2014, according to Acea figures. However, European factories were also carried by exports, which increased in volume by 4% in 2014. Overall, around 4.3 million vehicles, or 26% of European production (not including Turkey), were exported last year. And the share of exports has consistently climbed for several years: it stood at just 16% in 2005 and 22% in 2011. Demand comes particularly from China, which represented 14% of European outlets, up from 1% ten years ago, as China has taken time to fully service its own market (see above). On the other hand, the US's share of European exports has fallen from 34% ten years ago to 23% today. There are also other factors which have promoted European production, such as the negotiation of competitiveness agreements in certain countries (Spain, France, UK) and the current fall in the value of the euro. However, this resistance may slow down as the industry speeds up the creation of factories overseas, particularly to get round customs barriers. This is the case with German car builders, with the “made in Germany” share of the market expected to become the minority by 2020 and which are increasing their presence in China, the United States and Mexico. In conclusion, IHS anticipates that the share of exports in European production will rise to 29% by 2018 and then stabilise. (Isabelle Lamberty)