European car sales slump again as auto crisis deepens

By Chris Georg
16:05, April 16th 2009
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Berlin - European car sales fell by 17.9 per cent in the first quarter of 2009, data released Thursday showed, as the crisis in the global auto industry deepened.

The Brussels-based European car makers' industry association (ACEA) said the slump during the first three months of the year came in the wake of a 9-per-cent fall in auto sales in March compared to the came month last year.

The March decline represented the 11th consecutive monthly fall in European car sales with markets in nations badly hit by the world recession such as Britain, Ireland and Spain leading the fall and luxury car sales also taking a pounding.

With US-owned General Motors facing an uncertain future, the group reported a 20.1-per-cent fall in total March sales for its European brands.

The slump in March European car sales followed an 18-per-cent fall in February and a dramatic 27 per cent drop in January as a deepening sense of economic uncertainty and tighter credit conditions kept car buyers away from showrooms.

The drop in total European car sales came despite a strong performance in markets including France and Germany where governments have launched incentives for auto buyers to scrap their fuel-guzzling cars and replace them with more environmentally models.

The hefty 39.9-per-cent surge in March car sales in Germany and the 8-per-cent rise in France failed to offset the sharp 30.5-per- cent plunge in Britain and the 38.7-per-cent drop in Spain and plummeting cars sales in Central Europe.

Car sales in Ireland collapsed during the first quarter, dropping by about 65 per cent compared with the first months of the year.

While March car sales in western Europe fell by 8 per cent, auto sales in Central Europe nosedived by 25.4 per cent.

The falls were even more dramatic in individual Central European markets.

After reporting booming auto sales in recent years, car registrations in Bulgaria fell by more than 50 per cent in March.

In Latvia, car sales were down a staggering 80.3 per cent while registrations in Romania, Estonia and Lithuania fell more than 60 per cent.

Helped along by the shift to smaller more compact cars Italy's flagship auto group Fiat SpA reported a strong 14.3-per-cent increase.

Total car sales for Italy edged up 0.2 per cent on the month in March but cascaded down by 19.1 per cent in the first three months of the year compared with the same period in 2008.

At the same time, Fiat's iconic Alfa Romeo sports car reported a solid 40.9-per-cent rise in March and a 20.1-per-cent jump in the first quarter.

However, Thursday's data showed luxury carmakers really suffering as the global recession has deepened.

The ACEA said that while the world's premium car brand BMW AG posted a more than 20-per-cent fall during March and a 26.4-per-cent drop during the quarter, its Mercedes Benz rival reported a 16.2-per- cent fall in March sales and a 26.9-per-cent drop in the first three months of the year.

European sales of leading Asian carmakers also took a big hit in March with the Toyota Group reporting an 11.9-per-cent fall last month and a quarterly drop of 18.3 per cent.



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