Fiat, Toyota and Ford are the three car companies, which topped the tenth consecutive monthly decline in auto sales in Europe. The expiration of government incentives for the purchase of new vehicles and increase the tax burden in the European countries because of limited demand fiscal crisis on the continent. The number of new registrations in Europe fell by 1.1 percent on a monthly basis to 1.07 million vehicles in January. This monthly figures showed the European Automobile Manufacturers Association. With the sharp drop features Fiat, whose sales shrank by 20 percent within a month. Those of Toyota fell by 11%, while Ford is decreased by 9.4 percent on a monthly basis. High unemployment of 10% and end of programs to stimulate purchases of new cars makes European households to contain themselves in their spending. The analysts point out that Ireland and Romania are the only European countries that still offer incentives for the purchase of vehicles. The sales decreased in three of the five largest markets in Europe, reported 24 percent drop in Spain, 21% in Italy and 12% in Britain. At the same time purchases in Germany increased by 17%, and France increased by 8.2 per cent.
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The biggest carmaker in the world – Toyota, plans to cut its Board of Directors at least to 17 people from the current 27, said in Bloomberg two persons familiar with the company’s plans. This is the largest reorganization in the Japanese company for the past eight years, the goal is to improve the process of decision-making after a series of recalls of defective cars from the market. Toyota currently has 27 directors, including chairman, president, six vice presidents and 15 executive managing directors. The Board of Directors decreases will affect the number of executive vice president, shared the familiar, the changes will probably occur early in April, before the general meeting in June. Eight years ago, Toyota has reduced the number of Directors from 58 to 27, to accelerate decision making. The leading car manufacturer in the world take its largest reorganization in the last eight years. The company made serious financial loses from the turn back cars for fixing some small mistakes in the control systems of more than 10 million cars.

The impairment of assets announced in the last 2 years are far below expectations of 47% of the investors, analysts and lenders. This shows a study prepared by Ernst & Young, the consulting company reported. “Disclosure of Impairment – for greater stakeholder confidence is a survey among 170 users of financial statements in 32 countries, drawn from one of the most respected global audit companies. The analysis found that these 3-sectors where most more likely to be impaired assets further over the next 18-24 months, as real estate, banking and capital markets and the automotive industry. Over 90 percent of respondents recognize that to predict cash flows over the next 12-18 months will be a major challenge. Jim Iyls, Department of Evaluation and Business Modeling at Ernst & Young, commented: “Investors, analysts and lenders are familiar with the difficulties and uncertainties in managing the business in current economic conditions. However, their confidence is fragile and they are cautious to forecast the future management of their businesses. As a result, they will be more demanding and seek greater transparency and more accurate interpretation of the assumptions made by management in the future of their businesses. ”
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The Union organization in the automobile manufacturer Opel rejected the restructuring plan submitted by parent company General Motors (GM). This confirmed the president works council Klaus Franz to Germany daily Frankfurter Rundschau. “The loss of nearly 9 thousand jobs in Europe is unacceptable,” says Francis told the newspaper. Negotiations on the future of Opel and its British Vauxhall marks are expected to be renewed in the second week of January. Since GM had said he wanted to cut about 8300 employees of 50-thousand in Europe, but the distribution of cuts in different plants remains unclear. Such job losses are “economic fatuity” according to Franz, who believes that by 2013 around 10 500 positions either way will be closed in the Opel and Vauxhall for the exit of workers into retirement. Klaus Franz also calls for greater independence, the Opel within the group of GM and a free connection with the company’s global market. Opel became the protagonist of the saga continued this year. Several companies want to become owner of the manufacturer after General Motors announced that it sells.
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