Analysts at LMC Automotive have told just-auto that the European auto industry is heading for a sharp downturn in 2012 stemming from the region’s ongoing economic crisis. However, they also say that the downturn will be much less severe than that of late 2008 and early 2009 because there is less of a surplus stock problem this time round.

Scandinavian supplier body FKG has described today’s (19 December) decision by Saab to file for bankruptcy as a “disaster” for the Nordic component manufacturing sector.