Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Sales by Market
May 01, 2020 05:57 AM

Kia exec sees European sales returning to normal in the summer

Andrea Malan
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    A Kia dealership in Brentford, London. Kia will offer insurance to buyers to protect them from having to make monthly payments on a new vehicle if they lose their job.

    New-car sales in Europe could return to a "more or less" normal level in July as measures to reduce the spread of coronavirus are relaxed, according to Kia Europe's chief operating officer. Before then, registrations will be down steeply -- with volumes for April "catastrophic," Emilio Herrera said.

    Registrations in the European Union will be down 75 percent to 80 percent in April, Herrera told Automotive News Europe in an interview.

    The fall in sales is likely to be less severe at 50 percent in May as dealerships in major markets begin to resume sales, he said.

    Most European government ordered dealerships to close through April as part of lockdowns to limit the spread of the COVID-19 pandemic. Showrooms in Germany were allowed to reopen on April 21. Italian dealerships will restart sales on May 4. Dealerships in France will resume sales on May 11.

    In June Herrera expects the year-on-year decline to be 25 percent.

    The decline in registrations could be reduced if governments introduce incentives programs to encourage owners to scrap older vehicles for new ones, Herrera said.

    "We need to put in place scrappage plans like in 2009," Herrera said in a separate interview with Reuters.

    Potential stimulus plans should help cut carbon pollution, but also incentivize customers to buy all categories of car, not just electric and hybrid vehicles, he said.

    "Electrified cars are much more expensive than combustion-engined vehicles," Herrera said "If we want to stimulate demand now, we need to help the low income people who are first going to lose their job.

    Herrera: "We need to put in place scrappage plans like in 2009."

    Job-loss insurance

    To entice reticent customers back into showrooms, Kia plans to offer insurance in Europe which protects buyers from having to make monthly payments on a new vehicle if they lose their job.

    The program which costs 15 euros to 20 euros a month, will allow new-car buyers to delay monthly payments until they are rehired.

    Kia saw its European registrations decline 14 percent in the first quarter because of disruptions sparked by the coronavirus crisis. "If governments don’t decide on subsidies soon, "the second quarter will be even worse," Herrera said.

    The automaker resumed output of its Ceed compact car and Sportage SUV at its only European plant in Zilina, Slovakia, on April 6 after a two-week stoppage.

    The plant is currently working on two shifts instead of the normal three but it stopped again for a few days last week because of low demand, Herrera said.

    Reuters and Bloomberg contributed to this report

    RECOMMENDED FOR YOU
    Europe 2023 car sales: Pent-up demand to fuel growth, but recession fears loom
    Recommended for You
    Jeep dealership France
    Europe 2023 car sales: Pent-up demand to fuel growth, but recession fears loom
    Dacia Sandero during a test drive
    Dacia, Volvo, DS gain as French sales rise 9% in January
    Toyota C-HR orange during testing in 2020
    Top 10 sellers by market, Toyota tops in 2022, VW No. 2
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us