Mar. 18, 2010 (United Press International) -- U.S. automakers said the end of incentive programs for car buyers in Europe will likely lead to a sharp drop in vehicle sales.
Ford Motor Co. is forecasting a monthly sales decline of 30 percent in April, as programs in Europe that provide subsidies for car buyers trading in older models -- similar to last year's cash-for-clunkers program in the United States -- come to an end, The Detroit News reported Thursday.
Italy and Germany have wound down their rebate programs, while France and Britain are closing theirs down soon, the News said. Russia, meanwhile, has just begun its own version of cash-for-clunkers.
Ford boosted its production by 20,000 units in the first quarter at its European factories, but is rethinking that strategy, said Ingvar Sviggum, Ford's head of sales and marketing for Europe said.
By May, "we'll see where the industry is going to end up," Sviggum said.
Mike DiGiovanni, General Motors Co.'s head of global market research, said sales would likely drop 10 percent in Europe.
Countering the end of subsidy programs, "the major markets are beginning to emerge from the recession," DiGiovanni said. "We do think Europe's turning the corner."
