European Auto Sales in August Drop on Record Lowest Demand image

Auto sales in Europe dropped in August, there taking deliveries so far this year to the lowest level since 1990, decease due to record unemployment levels.

Registrations in August fell 4.9% to 686, buy 957 units from 722,458 units during the same month last year, according to ACEA. Sales during the first eight months of the year fell 5.2% to 8.14 million vehicles. The high unemployment level in Europe, which was 12.1% in July, made auto industry leaders keep their predictions of a sixth straight year of declines in 2013.

“We’re still in red territory,” Florent Couvreur, a Paris-based analyst at CM-CIC Securities, said by phone. “When people say we’ve reached the bottom, I say, ‘watch out,’ because the market is still decreasing. The drop is a little less steep, but we’re still falling because of the bad macroeconomic environment.”

VW dropped 1.3% to 180.70 euro, Peugeot fell 2.9% to 12.28 euro and Fiat slid 1.1% to 6.07 euro. In July the auto market in Europe increased 4.9% to 1.02 million units, the second growth in 19 years after an 1.7% jump in April.

Western European deliveries dropped 5.3% to 632,825 units last month, with sales in Germany falling 5.5% to 214,044 vehicles, from a 2.1% jump in July. Deliveries in the UK, which is the second biggest market in the region, increased 11% to 65,937 units in August.

Source: Bloomberg