Eastern European car boom is probably over

FRANKFURT, Nov 8 - A downturn in car demand will probably spill over into eastern Europe, which has been a stronger growth area than western Europe, GM Europe President Carl-Peter Forster said in a trade press interview.

"This area used to be a growth area, but not any more," Forster said in extracts of an interview which will run in full on Nov. 10 in Automotive News Europe. "I would not expect them to be able to decouple themselves from a more difficult situation in Europe."

The publication said a slowdown was expected in eastern Europe next year due to the tightening of credit, collapsing consumer confidence and higher used car imports from western Europe.

Europe had so far provided a silver lining for many leading U.S. auto suppliers. But the slump in sales that started in the United States is spreading to other key markets as the global credit crunch rocks consumer confidence.