DATE: Embargoed until Tuesday 18 July 2006
CONTACT:
Christian Martin, PricewaterhouseCoopers
Tel: +33 1 56 57 8091 email: christian.martin@fr.pwc.com
Calum MacRae, PricewaterhouseCoopers LLP
Tel: +44 1603 88 3240 email: calum.j.macrae@uk.pwc.com
OR
Kristina Blissett, PricewaterhouseCoopers LLP
Telephone: +44 20 7212 5133 email: kristina.blissett@uk.pwc.com
EUROPEAN LIGHT VEHICLE ASSEMBLY GROWTH TO BE DRIVEN BY CENTRAL EUROPE
Total European light vehicle assembly figures are set to grow by nearly 2.8 million units by 2010, representing a 14% increase, according to findings by the PricewaterhouseCoopers Automotive Institute. Much of this growth will be driven by Central Europe and will be led by Slovakia (429%) and the Czech Republic (81%), which combined will contribute 41% of the expected growth in European light vehicle assembly.
Reflecting a shift towards lower cost assembly bases in Central Europe, traditional Western European automotive assembly markets such as France (3%) and Spain (5%) are expected to see only moderate growth. Assembly in the UK is expected to decline by 16% by the end of the decade.
Overall Europe will contribute 30% of the 9.1 million units of incremental global assembly growth. But this will only marginally eclipse the expected contribution of China (28%).
Calum MacRae, European leader, PricewaterhouseCoopers Automotive Institute, said:
“Despite the focus on China as a rapidly expanding manufacturing base, automotive production in Europe in 2010 will maintain its edge. But with two thirds or 1.3 million units of European Union growth coming from member countries who have entered since May 2004, a whole new landscape of production is being created by dramatic shifts within Europe.”
Russia is benefiting from localised emerging market capacity investment to meet growing demand. It is expected to grow by 36% from 2005-10 to 1.63 million units.
Germany is set to retain its current position as the largest total unit manufacturer in Europe. Fiat’s resurgence means Italy is expected to grow by 35% from 2005 to 1.35 million units, making it the fourth fastest growing market in Europe.
Christian Martin, European Automotive leader, PricewaterhouseCoopers said:
“As manufacturers and suppliers shift production to Eastern Europe it brings about a whole new set of economic dynamics; both in the territories they withdraw from, as well as those they enter in to.”
ENDS
Notes to Editors:
European Light Vehicle Assembly 2005-2010
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Source: PwC Automotive Institute / AUTOFACTS Global Light Vehicle Outlook (2006 Q3 Release)
1. For more information on PricewaterhouseCoopers automotive practice visit www.pwc.com/auto
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For more information on issues surrounding the global automotive market, visit PwC's Automotive Institute at www.pwc.com/auto/institute
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