Irish market fell 60% since 2007

 

- The Irish car market is one of those who declined the most in Western Europe since the financial crisis of 2008. This market declined from 194,000 new car sales in 2007 to 79,000 units in 2012, a drop in sales of 60% in 5 years. The first 2 months in 2013, the Irish market is still losing 15% (compared to the first 2 months of 2012).


- The Irish market fell in 2012 down to its  level in the 80s, reversing the dramatic growth of the 90s and 2000s. The market had indeed tripled during this period (reaching  a peak of 237,000 units in 2000), as a result of spectacular economic growth. This economic growth was favored by an economic policy which reduced the rate of corporate tax, allowing the establishment of many foreign companies (mainly U.S.).


- In 2008, the financial crisis has particularly affected Ireland who had previously seen its  property values explode. Banks have seen their incomes fall and the deficit grew in proportions very important. The government had to increased taxes in order to bail out the country's finances.


- As for carmakers, the former group leaders Ford and GM have been supplanted by the Volkswagen, Renault-Nissan and Toyota groups in 2012. The Volkswagen group  accounts for  a quarter of the Irish market in 2012.


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