BMI Sees Little Hope For Car Sales Despite August Rebound

New car sales growth in Italy and Spain of 1.5% year-on-year (y-o-y) and 5.9% y-o-y respectively during August has done little to bolster BMI's outlook for car sales in these markets during the remainder of the year. In fact, in light of the tough economic conditions in both markets, we have downgraded our end-2011 forecasts and expect only a moderate recovery in 2012. Furthermore, we believe that car sales in Spain will significantly underperform Italy as aggressive fiscal austerity, rising interest rates, stubbornly high unemployment and ongoing deleveraging within the private sector will keep growth well below potential over the

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