Up to now the luxury car market has withstood the economic slowdown and the financial crisis remarkably well. In fact sales of luxury cars all over Europe showed a significant increase during 2010. This was certainly not the case for cars aimed at the middle and working class, where we saw a marked drop in sales.
The tide, however, seems to have turned for the rich as well. The well-known super-car retail group HR Owen has issued a warning to its shareholders that trading activities for the second half of 2011 might result in a loss - a clear sign that demand for luxury cars has also started to decline.
The group, which is based in London, retails upmarket brands such as Bugati, Bentley, Ferrari, Rolls Royce, Lamborghini, Aston Martin and Maserati.
In its statement the company says "Demand conditions in the luxury car market have deteriorated in recent weeks."
The statement also mentions that the company is experiencing supply problems with a certain number of these brands, which will also have a negative impact on their sales for the final quarter of 2011.
The board expects that the company will make a small loss for the period between July and December. This will be offset by a profit for the first half of the year and the net result for the year is still expected to be a profit.
The statement further says "We continue to enjoy a strong balance sheet with positive cash balances ahead of budget."
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