Europe: Greek auto sales fall in June image

Greece, which is in complete turmoil, has posted the biggest fall in demand for new vehicle sales of any western European car market last month, according to industry figures.

The auto sales in June plunged 21.6 percent from the same level last year as political uncertainty hovered as the country was heading to a crucial country bailout referendum – which was massively dismissed by 61 percent of voters over the past weekend. Official data for Greece will not be available until the end of the week, but figures compiled by consultancy firm LMC Automotive announced a tally of just 6,247 new vehicles in June. Back in April, a major fleet renewal move by various car rental companies has made Greek auto registrations jump no less than 43 percent year-over-year, the real trend was downward. According to the Greek Association of Motor Vehicle Importers Representatives, sales of new passenger vehicles in Greece last year plummeted 73.5 percent after an even sharper decline of 78.3 percent during the prior year. Additionally, the industry group said consumer demand for the period between January and May slid around 70 percent.

Over the weekend, the Greek constituents, with an overwhelming 61 percent majority opted to vote “no” on a referendum to decide whether the government (which also called for a negative result) should accept a proposed bailout. Greek leaders considered the terms way tougher than necessary and the rest of the European Union has refused to renegotiate the terms – leading to an uneasy standstill. That could bring the collapse of the entire Greek banking system and the country’s exit from the euro currency.

Via Reuters