Italy Auto Sales Down 1.9% in July image

Auto sales in Italy dropped 1.92% in July to 107,514 units, according to the ministry of transport and infrastructure.

During the seven months of the year sales in Italy dropped 9.23% to 839,481 units. Fiat’s share of the total auto sales accounted for 29.18%, under the 30% benchmark for its home market, according to MF- Dow Jones calculations. VW, which is the second biggest automaker by market share for July, said that its sales dropped 6.93%.

Automakers in the country are still struggling with the economic crisis and the sustained slump in the region’s auto market. Consumers avoid buying new vehicles, waiting for the economy to improve. It’s been two years since Italy has been hit by recession.

Auto sales in Italy dropped 7.9% in May, from a fall of 10.8% in April and a drop of 20% for the first five months of the year. Fiat said that sales in May were affected by the fact that it was not able to deliver 3,000 vehicles it had sold in May, due to an issue with a components supplier.

Marchionne assured Minister Flavio Zanonato that Fiat will keep employment even if the auto market in Italy is close to drop to levels last seen in the 1970s. In 2012 auto sales in Italy fell 20% and this year are expected to drop 5% more, to around 1.3 million units.

Source: Autonews