Italy New Car Sales Down 10.82% in April image

New car sales in Italy dropped 10.83% in April to 116,209 vehicles, according to Italy’s Transport Ministry.

In March new vehicle sales in Italy fell 4.9%, adding to the 19.8% decline for the entire 2012. Automakers in Europe are still struggling with the effects of the financial crisis and the recession which has been affecting the region for the past two years. Fiat’s market share increased to 30.2% last month from 28.75% in March.

Anonymous sources said that Fiat CEO Sergio Marchionne is currently considering switching the company from Milan to the US for almost all its revenue and profit. Fiat might keep Milan to be its secondary listing. If Fiat really goes ahead with this plan, it would be a blow for the debt-ridden Italy and will attract the political criticism.

On another matter, last month, automotive think tank Quintegia said the number of auto dealerships in Italy has dropped from 3,450 in 2002, to 2,950 in 2007 and 2,011 at the beginning of 2013. Dealerships are closing due to the drop in demand and therefore sales, as auto market in Europe heads towards the sixth consecutive year of decline.

Source: cnbc.com