A detrimental macro-economic context

For several years now, the state of the car market has been one of the media’s favourite preoccupations, with figures that are enthusiastic when it comes to margins, but less so when it comes to annual sales, particularly in Europe. Historically, culturally, socially and economically, the car industry is a subject that arouses controversy, heated debate, contradictory forecasts – in short, inflaming passions. But there is one thing that everyone can agree on. The automotive sector is not in the best of health. And there are many reasons for this.

A health crisis that has left its marks

In the space of just a few years, the world has experienced a series of crises that has had no equivalent for a very long time. Following the subprime mortgage and government debt crises, the Covid- 19 crisis marked the ‘zero point’ in four years of turmoil. In addition to its health consequences, it has had a wide-ranging impact on the economic environment. Debts have increased, limiting the budgetary capacity of governments, particularly in Southern Europe. Also in Europe, savings rates hit record highs, reflecting the cautious, wait-and-see attitude of households. Domestic demand, particularly in China, is struggling to recover, with confidence shaken.

Geopolitical tensions that persist and multiply

This health crisis was followed by other crises that also knew no borders. With the wars in Ukraine and the Middle East, and the attack on Iran, deadly and often long-lasting conflicts, leading to major economic sanctions, have brought back memories that the world thought were long buried.

A challenging economic environment

Against this backdrop, inflation, also long forgotten, has made a comeback. Interest rates have soared again. Budget deficits are at record levels in the United States and France. Unemployment is likely to increase again. Energy prices have fluctuated sharply. Purchasing power has been affected almost everywhere.