Brucelee
06-16-2008, 14:21
New-Car Demand Falls in Europe
By CHRISTOPH RAUWALD
June 16, 2008
FRANKFURT -- Demand for new cars in Europe fell 7.8% in May because of one fewer working day and a "massive" increase in fuel prices, the European Automobile Manufacturers' Association, ACEA, said.
European new-car registrations declined to 1.33 million in May from a year earlier. In the first five months of the year, new-car registrations were down 0.7% from a year earlier, to 6.92 million vehicles.
Registrations in the Western European car market decreased 8% to 1.24 million vehicles in May. Of the major markets, France was the only country where registrations rose -- by 7% in May and by 5.2% in the first five months, ACEA said Friday.
Demand in Germany, Europe's biggest auto market, was dented by continuing confusion among car buyers over the country's new carbon-dioxide-based taxation proposals, a Citigroup report said. The German market shrank by 6.2% in May to 275,259 new-car registrations.
"The effects of new national taxation schemes combined with a softening economy, rising petrol prices and weak consumer confidence will continue to hurt sales" for the rest of the year, Citigroup analyst Kristina Church wrote in a note to clients.
In Eastern Europe, where auto makers recently got some relief from sluggish Western European markets, car sales also fell in May.
Japan-based auto maker Toyota Motor Corp. continued its streak of weaker results in Europe as its new-car registrations fell 22% in May to 65,793.
Most other major auto makers posted results roughly in line with the overall market.
Volkswagen AG, Europe's biggest auto maker by sales, saw an 8.1% drop in May registrations to 269,476 vehicles. The company's core VW brand posted an 8.2% decrease to 139,521 vehicles. Registrations for its Audi premium brand declined 6.9% to 59,250 cars.
French car maker Renault SA's registrations dropped 5.7% to 117,133 in May, as the company's no-frills Romanian brand Dacia plunged 36% to 12,504 cars, a result of a strike and a supply shortage.
Rival PSA Peugeot-Citroën SA posted a 7.9% decrease to 175,292 new-car registrations.
Detroit auto makers General Motors Corp. and Ford Motor Co. posted declines of 5.4% and 8.6% to 133,061 and 140,778 registrations, respectively.
Italy's Fiat SpA saw registrations fall 4.5% in May to 113,866 cars.
Results for German premium auto makers BMW AG and Daimler AG decreased 4.4% and 13% in May to 76,798 and 66,800 registrations, respectively, in line with data reported by the companies earlier this month.
By CHRISTOPH RAUWALD
June 16, 2008
FRANKFURT -- Demand for new cars in Europe fell 7.8% in May because of one fewer working day and a "massive" increase in fuel prices, the European Automobile Manufacturers' Association, ACEA, said.
European new-car registrations declined to 1.33 million in May from a year earlier. In the first five months of the year, new-car registrations were down 0.7% from a year earlier, to 6.92 million vehicles.
Registrations in the Western European car market decreased 8% to 1.24 million vehicles in May. Of the major markets, France was the only country where registrations rose -- by 7% in May and by 5.2% in the first five months, ACEA said Friday.
Demand in Germany, Europe's biggest auto market, was dented by continuing confusion among car buyers over the country's new carbon-dioxide-based taxation proposals, a Citigroup report said. The German market shrank by 6.2% in May to 275,259 new-car registrations.
"The effects of new national taxation schemes combined with a softening economy, rising petrol prices and weak consumer confidence will continue to hurt sales" for the rest of the year, Citigroup analyst Kristina Church wrote in a note to clients.
In Eastern Europe, where auto makers recently got some relief from sluggish Western European markets, car sales also fell in May.
Japan-based auto maker Toyota Motor Corp. continued its streak of weaker results in Europe as its new-car registrations fell 22% in May to 65,793.
Most other major auto makers posted results roughly in line with the overall market.
Volkswagen AG, Europe's biggest auto maker by sales, saw an 8.1% drop in May registrations to 269,476 vehicles. The company's core VW brand posted an 8.2% decrease to 139,521 vehicles. Registrations for its Audi premium brand declined 6.9% to 59,250 cars.
French car maker Renault SA's registrations dropped 5.7% to 117,133 in May, as the company's no-frills Romanian brand Dacia plunged 36% to 12,504 cars, a result of a strike and a supply shortage.
Rival PSA Peugeot-Citroën SA posted a 7.9% decrease to 175,292 new-car registrations.
Detroit auto makers General Motors Corp. and Ford Motor Co. posted declines of 5.4% and 8.6% to 133,061 and 140,778 registrations, respectively.
Italy's Fiat SpA saw registrations fall 4.5% in May to 113,866 cars.
Results for German premium auto makers BMW AG and Daimler AG decreased 4.4% and 13% in May to 76,798 and 66,800 registrations, respectively, in line with data reported by the companies earlier this month.