Monday, October 24, 2011

European Scooter Sales Q3 Report

Taiwan Economy News reporter and our good friend Quincy went the extra step this month to report what is happening in Europe. Seems like the MIC in the US isn't the only one seeing a downward trend.

Scooter Sales are down overall in Europe everywhere except in Germany.
Quincy Liang reports that 2011 will likely end with negative double-digit growth, according to ACEM (Association of Motorcycle Manufacturers in Europe).

During the first eight months of 2011, sales of new PTWs in the countries monitored by ACEM were down 8.86% over the same period of 2010, with just 105,6906 registered units.

Among the five main European Union (EU) markets, new-PTW sales in Italy were down -17.3% year-on-year (YoY) January to August, Spain declined 15.1% YoY, and the Netherlands dropped 13% YoY, which are reporting the biggest losses. Some countries that had seemed to be doing well at the end of the first semester, like Belgium and France, have considerably reduced their advantage.

France faces a small decrease (-2.8%) while Germany seems to be the only country resisting the general trend with a positive 3.7% growth. The U.K. lost 2.36%. A closer look at the motorcycle and moped segments (models with engine displacements under 50cc) shows that they share almost equally the cumulative losses, with -8.9% for PTWs over 50cc and mopeds declining by 8.75%.

In the last month we have seen Piaggio Group trying to negotiate its way out of the Derbi plant in Spain. There is little hope for this factory in 2012 because it sounds like no matter what it's getting the axe. Malaguti trew in the towel paying out over $6 million, yes thats six million dollars at the current exchange to pay off existing employees. It was cheaper to do that than to continue operating another year at a loss. I disagree with the killing of a historic brand with over 83 years of value, but if you're a family member who is loosing money every year it might make sense to give the janitor thirty thousand Euros to go away.

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