The European auto market which has been in decline since 2007 won’t recover until the end of the decade according to a recent report.

The Global Automotive Outlook report issued by business consultants AlixPartners, says that the European crisis, and implicitly high unemployment, will affect consumer’s confidence in the following years too. In Western Europe, demand for light commercial vehicles and new passenger cars will shrink with 1 million in 2013 to 13.5 million, down 3.3 million units sold in 2007, before the crisis. Industry sales are unlikely to reach 16 million units again before 2020, the study says.

In Europe new car sales have fallen to the level of 1994, with Spain’s sales in July down 17%, Italy down 21% and France 7%. Even Germany, where sales have not been affected so much by the European crisis, saw its new car sales down 5% in July, with Mercedes recording a fall of 14.6%, BMW 17.9% and Volkswagen 1.5%.