The Party May Be Over For Carmakers

Oil prices, the euro's woes, and inflation could crunch sales

Don't tell Europe's car dealers and auto makers that the Continent is headed for crisis. As recovery has taken hold in countries big and small, consumers have been snapping up autos at a furious pace, enough to match last year's record of 15 million cars sold. Ford Jaguars, Volkswagen Polos, and Renault Meganes have been jumping off the lots. Even the euro's weakness has boosted U.S.-bound exports for Volkswagen and BMW.

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