, Columnist
Car Industry Faces Brexit Breakdown
Europe can't expect China and U.S. to ride to the rescue this time
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You almost have to pity Europe's carmakers. Sales were really beginning to purr again on the continent after a torrid period during which overstretched consumers stopped spending.
EU car sales rose more than 9 percent in 2015 and increased by a similar amount in the first five months of this year. Profits recovered. French carmaker Peugeot, for whom Europe accounts for about 63 percent of vehicle sales, achieved a 5 percent operating margin last year -- decent for a mass-market manufacturer.
Yet after a sharp-sell off last week, investors are on average now willing to pay only about 5.8 times the estimated forward earnings of European auto stocks.