New Car Registrations in France Down 15% On Year in January image

Data from the French automobile manufacturers’ association shows that new car registrations on year in January in France dropped 15%.

In January, 124, 952 vehicles were sold in France, a decrease of 15% compared with the same period in 2012, according to sector group CCFA. In 2012 sales fell almost 14% to 1.9 million vehicles, the lowest level seen over the past 15 years.

The decline in France is the response of the continuous drop in Europe caused by the financial crisis. In 2012 demand for new cars in the EU fell to its lowest level since 1995, and the most affected automakers were Renault and PSA Peugeot Citroen. Renault reported a 7.4% drop in new car registrations in January, while PSA Peugeot Citroen’s sales fell 16.7%. Foreign automaker also saw their sales drop in January, with VW down 24%.

Today, February 1st, PSA brand director Frederic Saint-Geours said that in order to return to balanced finances the company has to cut almost 11,000 jobs by 2014, adding that the automaker is currently manufacturing half a million fewer cars compared with five years ago. Renault also plans to cut 7,500 jobs in France from the total of 44,000, if the labor unions will not agree with salaries freeze and increased working hours.