Brussels, 25/07/2008 (Agence Europe) - In spite of the economic uncertainty prevailing over the first quarter of 2008, passenger car production in Europe was stable, with an increase of 1.2% on the first quarter of 2007. Demand, however, is likely to contract over the remaining six months of the year with forecasts pointing to a 2.7% decrease, according to the Economic Report 2008 of the European Automobile Manufacturers Association (ACEA) published on Thursday 24 July 2008.
Of the 53 million cars manufactured globally every year, a third are made in the EU. In the first quarter of 2008, 5,223,812 vehicles (cars, vans, trucks and buses) were produced in the EU27, up 1.2% on the same period in 2007. Particularly solid growth was recorded in the truck (lorry) sector (12%), while the production of light commercial vehicles and buses went up by 4% and 2% respectively, slightly higher than the production of private vehicles. New private vehicles comprises 86% of total vehicle production and demand rose by 0.5% in the first quarter but the lacklustre economic situation (subprime crisis, credit crunch, high oil and food prices) is expected to impact on demand, particularly in Western Europe, explains ACEA, which expects demand to fall by about 3.6%. Production in the new EU Member States will continue to rise (growth of 9% is expected) but at a slower rate than in 2007. Of the five main car markets in the EU (Germany, Italy, France, the UK and Spain), only France and Germany will see a slight rise in production, but overall demand in the EU27 is expected to fall by 2.7%. The production of motor vehicles in Europe is moving towards the manufacture of greener vehicles. Demand for diesel vehicles rose in Western Europe rose 1% in the first half of 2008 compared with the same period of 2007, accounting for more than half of the new vehicle registrations in the first half of 2007 (53.1%). 35% of new vehicles registered in 2007 emit less than 140 g of CO2 per kilometre, with 11% emitting less than 120 g CO2/km. ACEA Economic Report 2008: http: //http://www.acea.be/images/uploads/files/200107245_Economic_Report_II_0806_2008_Q1.pdf (A.By /transl fl)