Decreasing Car Sales In Europe Essay

751 words - 4 pages

Are cars going to still exist in Europe’s future? The article “No Traction: Europe’s Car Makers Spin their Wheels” written by Vanessa Fuhrmans states that there is a decline in people buying cars. Companies such as Ford Motors, General Motors, and Fiat SpA are showing that they have lost billions of Euros during this year. The loss of money is causing these car making companies to close down the doors on many of their plants. Companies closing its plants down has left many people without a job which has angered many of their previous workers; such as in Genk, Belgium; where they would “protest by torching cars, smashing windows and storming a building.” Some workers in Ugur Alkism have worked at a plant for 27 years are now left with nowhere else to go for a job because they are too old to find a new job but too young to retire.

The decline in the auto industry’s revenue is due to the decreasing demand for a car. In the past, people have depended on their own car for a means of transportation and social status. However, today the younger generation is able to spend their money on less expensive items such as clothing, electronics, or their selves to determine their status on the social pyramid. Teen today are also not getting their driver's licenses compared to the previous generations which has affected the demand for them to buy and own a car. All of the objects that people use today determines their status which is much cheaper than buying a car. The decrease in car sales is also affected by many different carpool or rental programs. Many companies today provide their employees with the option of carpooling with their peers in order to help them save money on car insurance, gas, and payments. Rental services are also available for those who are in need of a car for themselves. All of these factors lead to the need of a car to decrease leading in teens to lose interest in getting their licenses.

The three determinants that has led to the decrease in car sale revenue are price of related goods, income, and number of buyers. All three have been stated in...

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