European Auto Market Slump Continues

PARIS — European new car sales contracted in March for an 18th consecutive month, industry data showed Wednesday, led by declines in Germany and France.

New vehicle registrations in the European Union fell 10.2 percent in March from a year earlier, the European Automobile Manufacturers’ Association reported from Brussels, to 1.3 million vehicles from about 1.5 million in March 2012.

Economic stagnation continues to demand in the 27-nation bloc long after a rebound in auto sales in the United States and continuing growth in emerging markets. Across Europe, more than 26 million men and women are unemployed, according to official data, and the overall economy is expected to contract in 2013 for a second straight year.

This month, the International Monetary Fund revised downward its forecast for 2013, saying it now expects the 17-nation euro zone, which makes up the bulk of the European Union economy, to shrink by 0.3 percent, worse than the 0.2 percent decline it had previously forecast.

The data Wednesday showed sales in Germany, which has the largest economy in the European Union, fell 17.1 percent; economic sentiment among Germans has fallen sharply in the last month, according to a report Tuesday from the ZEW research institute. In France, hobbled by economic stagnation and 10.8 percent unemployment, sales fell 16.2 percent. The only expansion among major markets was a 4.9 rise in Britain, which is outside the euro zone.

Sales of Volkswagen, Europe’s biggest automaker, slid 9.0 percent, with the biggest decline from its Volkswagen brand. Sales at PSA Peugeot Citroën, No.2 in Europe, plunged 16 percent. Ford Motor’s sales slid 15.8 percent, while General Motors’ tumbled 12.6 percent.

In recent months, the high-end market, which had held up even as the mass-market segment withered, has also begun to lose steam. Sales at Daimler, which warned last week that its 2013 profit forecast was beginning to look shaky, fell 1.2 percent, while its rival BMW posted a 4.7 percent sales drop.

Article source: http://www.nytimes.com/2013/04/18/business/global/european-auto-market-slump-continues.html?partner=rss&emc=rss