Car sales hit bottom

Car sales stabilized and began to grow in the middle of the second quarter, following the acute decline in the first quarter of 2009 In May, global sales of vehicles reached its highest level since last August, the largest growth was in developing markets (especially China, where the impacted state incentives)
Analysis of Moody’s in May forecast a drop in turnover in the sector by 13 percent throughout 2009, in the U.S. this fall will be 24%.
However, June sales in the U.S. and Japan portend continued improvement of markets, it is clear from a review of RGE Monitor. In particular, the decrease in U.S. market is slow to -27.7% on an annual basis in June (the first month since September, when sales fell by less than 30%). However, annual sales have remained under 10 million, due to doubts in the implementation of State program for government subsidies for the replacement of old cars (it was approved in June and provides grants of $ 3,500 – $ 4,500 when purchasing the car more energy efficiency).
In Japan the decline in June sales slowed down to 14% on an annual basis (at -29% in April) under the impact of subsidies and tax cuts to improved demand.
In Western Europe, sales in May jumped to its highest level since the beginning of last year. As is known, Germany and Britain were the first countries that adopted the state subsidies for the replacement of motor vehicle fleet.
Intervention of governments and incentive programs may help increase demand particularly in developing countries, but still the problem with overcapacity in the sector. Closure of plants is hampered by political factors and concerns about jobs.

Finance