Carmakers Lower Their Sales Outlooks

Executives at Ford, Daimler and Volkswagen tell reporters at the Paris auto show they expect slower growth in sales of new passenger vehicles, Reuters notes.

The companies point to sharp downturns in Russia and South America and a recovery in Europe that is being propped up by heavy sales incentives.

Daimler CEO Dieter Zetsche predicts worldwide demand for new passenger vehicles will grow 3%-4% this year. The company previously anticipated expansion of 4%-5%.

BMW CEO Norbert Reithofer doubts that Europe's car market will return to pre-recession levels in less than three years. Ford CEO Stephen Odell describes the sales pace in the region falling from the high end of expectations to the middle.

VW CEO Marti Winterkorn tells reporters he expects the European market to reach no more than 13.5 million units this year, or roughly 13% below pre-crisis levels. He does not expect volumes to return to pre-crisis levels anytime soon.