Italy, France and Germany See the Worst Auto Sales Drop in August image

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.