August brought Italy, France and Germany decreased sales due to the European debt crisis and the continuously dropping demand.
In August German new car sales dropped 4.7% to 226,500 units, while France saw a decrease of 11% to 96,115 cars, reaching the 10ht month of declines. Italy’s new car registrations fell 20% to 56,447 units, the lowest level since 1964 and the 9th month of decrease. Orders for new cars has also dropped 22% in Italy to 921,000 units, during the first eight months of the year.
“Without intervention to help boost the purchasing power of families via tax reductions and a relaunching of consumption it will be very difficult to see any sign of recovery,” saidJacques Bousquet, President of Italy’s car industry association UNRAE.
In Spain auto sales increased 3.4% in August as customers made efforts to purchase a new vehicle before the sales tax rise in September. This was the first increase in the past 7 months, but analysts expect the following months to bring disastrous sales. Europe shows no signs of recovery and automakers in this market face their worst hit.
In France, Renault reported a 30% fall, even if the automaker’s low-cost Dacia brand reached an increase of 21% due to its Sandero and Duster SUV. PSA/Peugeot-Citroen’s sales in the home market dropped 11% and it is forced to cut over 10,000 jobs to stop losses.