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TL;DR

• New car market last month declines 8.4%, industry body says
• Sales have fallen in all but two months since September 2018



(Bloomberg) -- European car sales fell sharply in August, deepening the woes of an industry battling sluggish demand in key markets and the challenge of rolling out electric vehicles.

Registrations dropped 8.4%, the steepest monthly decline this year, according to the European Automobile Manufacturers Association. The fall was partly due to exceptionally high growth a year earlier as manufacturers rushed out models ahead of tough new emissions-testing rules. Volkswagen AG shares lost 0.4% in early trading in Frankfurt and BMW AG was 0.3% lower.

In addition to the risk of a recession in Germany, carmakers are also facing a slowdown in the Chinese car market. European sales over the year to date are down 3.2% and the continent’s five biggest markets all contracted in August, with Spain and France posting the biggest slowdowns. The drop last month brought registrations down to 1.04 million units.

Nissan Motor Co. and Fiat Chrysler Automobiles NV saw the biggest slowdown in August sales at 47.5% and 26.5% respectively.

The industry’s predicament took center stage at the Frankfurt auto show, where thousands of protesters demanded political and industry action to combat climate change. The head of Germany’s auto lobby group also unexpectedly announced his resignation last week.

Carmakers at the show displayed their new electric models, which will become crucial in coming months as the companies race to meet new European carbon-dioxide emissions rules. Carlos Tavares, head of the ACEA and chief executive officer of Groupe PSA, last week called for more charging infrastructure to encourage consumers to buy the vehicles.

After the August 2018 boost, auto sales dropped dramatically overall and have failed to pick up since, with the association forecasting a 1% drop for the year.

While the ongoing issues in the car industry are hitting Germany in particular, there are signs of weakness in manufacturing across Europe. Euro-area economic growth is forecast to slow to 1.1% this year from 1.9% in 2018, which would be its worst performance in six years.

The weakness in industry hasn’t had a dramatic impact on the labor market so far. If that changes, and unemployment starts to rise, that would mark a step up in the seriousness of the slowdown. It would also further hurt car sales as consumers rein in big-ticket purchases.

Europe’s July sales increase, one of only two monthly gains in 12 months, was almost entirely down to Central European countries, the association said. Only Germany showed positive growth that month among Western European countries.
https://www.bloomberg.com/news/articles/2019-09-18/europe-car-industry-woes-deepen-as-august-sales-drop-sharply
 

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Well, it's been talked about for quite a while now; I do think it's coming, what with the trade spat with China and the instability in the White House. Most economists state the bond market's inverted yield curve is the most telling and worrisome symptom. I got hit hard in the last downturn....I thought they were crying wolf but we got slammed. They were right. No way this time....I've already moved some funds to safer places.
 

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Yes.
 

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Well, it's been talked about for quite a while now; I do think it's coming, what with the trade spat with China and the instability in the White House. Most economists state the bond market's inverted yield curve is the most telling and worrisome symptom. I got hit hard in the last downturn....I thought they were crying wolf but we got slammed. They were right. No way this time....I've already moved some funds to safer places.
TFL warning. Don't time the market, you'll never come out ahead. During the run up after 2009, if you missed a certain 10 days your return would've been cut in half.
 

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TFL warning. Don't time the market, you'll never come out ahead. During the run up after 2009, if you missed a certain 10 days your return would've been cut in half.
That is why I just bury everything in my back yard. Mostly in gold and silver. I have 4 sofas stuffed with my cashed paychecks.
 

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Including the Craigslist hookers?
No!
Are you crazy? They get moved to a warehouse property where they sit in 55 gallon drums with lye for a day or so before being moved and dumped into the Rio Grande.
 

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Well, it's been talked about for quite a while now; I do think it's coming, what with the trade spat with China and the instability in the White House. Most economists state the bond market's inverted yield curve is the most telling and worrisome symptom. I got hit hard in the last downturn....I thought they were crying wolf but we got slammed. They were right. No way this time....I've already moved some funds to safer places.
Funds are worthless. Gold is where it's at.
 

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Well, it's been talked about for quite a while now; I do think it's coming, what with the trade spat with China and the instability in the White House. Most economists state the bond market's inverted yield curve is the most telling and worrisome symptom. I got hit hard in the last downturn....I thought they were crying wolf but we got slammed. They were right. No way this time....I've already moved some funds to safer places.

Recession is a strong assessment. Maybe a market correction. Trade spat with China? You mean where we had a crappy "deal" with them, so we're changing the terms and in the process some prices on a few raw materials will increase, but more manufacturing will come back to the US? I think the only thing that staved off the 2019 downturn is Trump's trade changes. They've had a positive effect of bringing jobs and industry back and I think retail goods cost changes and raw material choppiness are better long-term changes for the US. But glad you're prepared. It will be nice to have some cash if things turn completely sideways, but I don't think we're going that direction unless the White House changes and that harebrained Green New Deal crowd dig in.
 

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Recession is a strong assessment. Maybe a market correction. Trade spat with China? You mean where we had a crappy "deal" with them, so we're changing the terms and in the process some prices on a few raw materials will increase, but more manufacturing will come back to the US? I think the only thing that staved off the 2019 downturn is Trump's trade changes. They've had a positive effect of bringing jobs and industry back and I think retail goods cost changes and raw material choppiness are better long-term changes for the US. But glad you're prepared. It will be nice to have some cash if things turn completely sideways, but I don't think we're going that direction unless the White House changes and that harebrained Green New Deal crowd dig in.
I'd like to see some proof behind those assertions.

Optimism in the economy is not at a high level for many corporate business leaders at the moment, mainly because of the trade war.
 

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No!
Are you crazy? They get moved to a warehouse property where they sit in 55 gallon drums with lye for a day or so before being moved and dumped into the Rio Grande.
You at least keep the heads right? I mean what good is it, killing hookers, if you don't keep a trophy somewhere around the house?
 

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Most my friends in Europe don't own a car or own a single very practical car (hatch,wagon,suv) simply because they live in urban areas with good public transportation. If they do own a car, they keep it forever (or until it rusts) because cars are so reliable. I'm sure demand is falling for economic reasons, but I would wager demand is falling simply because not as many people demand new cars these days.
 

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You can say whatever you want but given that a recession has a real definition (two consecutive quarters of negative GDP growth), you’d be wrong.
Sure.

I'm just speaking from what I'm seeing on the ground and around me: people I know are battening down hatches; homes aren't selling/renting; rent prices are coming down; stores closing up shop. The downturn is already happening.
 
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