Fiat and Renault the Most Affected by European Crisis image

The European crisis affected all automakers, but the ones with the steepest declines are Renault and Fiat.

In September car sales in Europe dropped 11% to 1.13 million vehicles, compared with 1.27 million in September 2011. That was the 12th consecutive month of decline and also the biggest drop since October 2010. From January to September 9.72 million cars were sold on the continent, down 7.2%.

From the total of five biggest European markets, four of them shrank in September, with Germany down 11% and Spain down 37%. When it comes to automakers, Renault saw its sales drop due to France’s 18% contraction and Fiat’s sales were taken down by Italy’s fall of 26%.

“Fiat basically stopped all new car launches in the last couple quarters,” said Sascha Gommel, an analyst at Commerzbank AG in Frankfurt. “That hurts them, in addition to the weak market.”

The European Automobile Manufacturers’ Association predicts Europe will see a 17% drop by the end of this year, and a fall of 8% to 10% on October 10th, higher than the 7% forecasted earlier. In September Renault’s sales dropped 29% to 78,299 units and Fiat’s sales were down 19% to 66,991 units.