European trailer industry enjoys record sales

Dec. 1, 2004
The European trailer market jumped 14% in 2004, according to CLEAR, a consulting group working with companies active in automotive markets. The growth

The European trailer market jumped 14% in 2004, according to CLEAR, a consulting group working with companies active in automotive markets. The growth was led by Germany and the Netherlands, both of which saw an increase of more than 20% this year. According to CLEAR's latest forecast of the European market for heavy-goods vehicle trailers, there will be a short breather in 2005, then consistent if unspectacular growth. By 2008 the market will reach a new record level, exceeding 140,000 vehicles.

In the seven largest European markets, 1999 and 2000 were particularly strong years, with trailer demand running at more than 130,000 units. Until this year, there were three years of consistent decline.

“The principal market drivers are business investment growth and the replacement cycle,” said Gary Beecroft, managing director of CLEAR. “Investment growth has strengthened recently, and this has produced a spectacular upturn. However, relative to the Euro-zone economy, the market is slightly overheated, and I would expect a slight fall in sales in 2005 before growth resumes.”

Trailer production will also rise in 2004. Exports to nations outside Western Europe are expected to strengthen — especially to the east, helped by the new EU members.

Trailer markets have changed drastically since the 1990s, when they were essentially national in character. Trailers tended to be bought locally, but there is now significant import/export trade, and local assembly by international groups. At the bottom of the market in 2003, both Kügel (Germany) and General Trailers (France), ranked three and four in Europe, went into administration/receivership. These groups have now been restructured and are continuing operations with only a small decrease in output expected.