3 European Carmakers Tipped to do well in 2015
While economic recovery in Europe is still fragile, European automakers are expected to do better in 2015.
Some automakers in the continent have seen significant increases in their sales this year, and they have forecasted that the growth will continue into next year.
Here is a look at a few European automakers that are expecting a good drive in 2015….
2015 Forecast for the European Auto Industry
According to Fitch Ratings, the sales of vehicles in Europe are expected to grow by 4.5 to five percent this year and rise further by three to four percent in 2015.
European automakers will generate more sales as a result of a modest growth in worldwide vehicle sales, as well as the implementation of new cost-saving measures.
READ MORE: Top 10 Car Manufacturers in Europe 2014
Over the past three years, most automakers have taken various restructuring and cost-cutting measures to keep the prices of their vehicles low, so that they can offset the fierce competition.
These efforts are paying off, and they will continue to boost sales and profitability in the near future.
European Automakers That Are Positive About 2015
Carlos Ghosn, CEO of Renault-Nissan, said in a recent interview that the automaker is aiming to achieve a global market share of eight percent by the end of the first quarter in 2017, up from 6.7 percent in 2013. He expects sales of Renault and Nissan vehicles to increase by one to two percent in Europe.
Renault-Nissan will be entering into partnership with Daimler, and it is investing substantially in developing technologies that can reduce vehicle ownership costs.
According to an article entitled "5 of the Least Expensive Cars to Own", the price of a vehicle means little, but the cost of ownership means everything.
By offering vehicles with low costs of ownership such as electric vehicles, plug-in hybrid vehicles, diesel vehicles and vehicles with downsized gasoline turbo engines, the automaker has established itself as one of the main players in the European market.
According to the finance chief of BMW, Friedrich Eichiner, the German automaker predicted that its profits will increase by up to 10 percent this year, and it is expecting further growth next year. However, he did not provide a detailed forecast for sales growth in 2015.
BMW will be introducing new models next year to boost demand, but it is unsure how this will affect its growth.
Hakan Samuelsson, CEO of Volvo, has helped turned the Swedish automaker around.
In just nine months, the company saw a nine-percent increase in global sales, and it is now growing faster than BMW, Mercedes-Benz and Audi in Europe.
It is forecasted that Volvo will continue to prosper in 2015 as it releases its second-generation XC90. This new car is expected to play a key role in the automaker's plan to increase its global sales to 800,000 units a year by 2020.
As automotive technology continues to advance, European automakers will be able to make vehicles that are increasingly affordable and appealing to consumers.
As such, they are generally expected to experience stronger growth in 2015.
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to finance.
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