European automotive majors could see more struggle in coming quarters as the automobile sales have been dropping in the recent months. With bleak outlook for future months, the auto majors are having no option but to cut staff and reduce plant costs.
Major auto companies operating in European region are expecting years of low sales due to austerity measures by European governments. With continued plunge in sales of new vehicles, the companies have to reduce their operating costs.
In year 2012, the car sales dropped 8.2 per cent in the European Union nations. The new vehicle registrations in Germany were down by 10% this February compared to last year. For the same period, the sales in France were lower by 12% and in Italy were lower by 17percent.
Many companies are betting on the growing markets like India and Brazil. By shifting production base to these countries, the automobile companies are able to maintain a strong hold in the developing nations.
It has been recently revealed that there is soon going to be a deal struck between India and Pakistan. This is going to be a huge trade deal that is going to open ways for better relations between the two nations. Pakistan has promised that they shall grant Most Favored Nation status to New Delhi.
There were talks held between commerce secretaries from both the nations and there were discussions done over a number of important issues regarding the new deal. Pakistan has also promised to give the full normalization of the bilateral trade relations with the neighboring country. This would also suffice the legal needs of the agreement.
According to a joint statement that was given out after the meeting, it was revealed that the negative list of items is going to be removed by Pakistan by February 2012.
It was further added by Zafar Mahmood, the Commerce Secretary of Pakistan that the negative list shall be discussed further and phased out by the end of 2012. There is also going to be the enhancement of Preferential Trading Agreements between the two countries as per the South Asian Free Trade Agreement Process.
More interaction is going to be done between the two countries so that bilateral trade is benefitted. There is need for both the nations to open up to each other further and become close and friendly with each other in order to trust each other for trade purposes. It sa matter of time to see what turn the events take and how well is it to bring back arch rivals under the same trading roof. It will either bring the two nations closer in terms of trade and personal relations, or might tend to strain them further.