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European car sales slump to 20-year low

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Time 9:46 am, June 19, 2013

558aa4b4-698d-4aa4-8c82-3196f8f6d102WITH just over a million vehicles registered in May, car sales throughout Europe are at their lowest since 1993.

According to figures published by the European Automobile Manufacturers’ Association, the demand for new cars in Europe was down by 5.9 per cent in May compared to last year.

France, Germany and Italy all show big declines in sales with the worst figures for May in 20 years. Meanwhile, the UK bucked the trend with car sales rising 11 per cent.


Analytics experts IHS forecast that new car sales in Europe will shrink roughly four per cent this year from 2012, when 12,053,904 vehicles were sold.

Automotive analyst at IHS, Mark Fulthorpe told The Guardian: ‘Most of the markets are going to be slower while austerity is the flavour, particularly in the southern Eurozone countries.’

Manufacturers dependent on the European market, such as Renault in France or Fiat in Italy are set to experience the most distress, as sales continue to drop.


Fulthorpe added: ‘If you have manufacturing network geared up to supplying markets that are in decline for the seventh straight year, there is little that can insulate you.

‘On the flip side, Volkswagen and some of the more obvious premium manufacturers – Jaguar, Daimler and BMW – aren’t geared up for western markets in the same way. If China continues to grow, they will benefit.’

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