Alert – Spain: New car sales down 50% image

According to Reuters via ANFAC, new car sales in Spain plunged nearly 50 percent in July from a year earlier.
ANFAC – Asociación Española de Fabricantes de Automóviles y Camiones said a fall in sales to private buyers was cause for “enormous concern,” adding that the drop in July puts car sales at levels not seen for 15 years.
Anfac, which will publish the number of car registrations for the month on Monday, called for an “urgent meeting” with Spain’s industry minister to study “possible solutions to this serious situation,” it said in a statement.

Spain posted a 17.9-percent decline in new car registrations last year, following a record drop of 28 percent in 2008 as the country’s worst recession in decades caused consumers to curb spending, especially on big ticket items.

According to autonews, The decline in the auto market in the second half of 2010 will produce massive layoffs among car dealerships and the disappearance of a number of small and medium-sized companies

“Considering the serious situation in the sector, the ANFAC board has called for an urgent interview with the Ministry of Industry to study proposals and possible solutions,” it said.