France, Spain new car sales down by double-digit in August image

New car sales in France and Spain fell sharply during the month of August, official figures showed on Monday.

In France new car sales fell 11 percent to only 85,565 vehicles in August, the Comité des Constructeurs Français d’Automobiles or CCFA announced Monday morning. According to the same source, the decline was led by Germany’s VW, Ford and Peugeot.

During the first eight months of the year, new car sales are down 10 percent according to the CCFA.

“September and October will be critical,” CCFA spokesman Francois Roudier said. “August is always a thin month, but this year it’s particularly low.”

The announcement comes after PSA – Peugeot Citroen said it will close its Aulnay factory near Paris at the end of October – about two months earlier than expected as car market continues to deteriorate. The factory that makes the Citroen C3 compact model is assembling only 40 to 50 vehicles a day compared to aprox 250 cars capacity.

Even so, France carmakers still believe that carmarket will recover somewhat in the fourth quarter.

On the same time, situation in Spain is even more complicated as new car sales dropped almost 19 percent year-on-year in August after rising by almost 15 percent in July, Anfac – Asociación Española de Fabricantes de Automóviles y Camiones said on Monday.