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October new car sales up 11% in Europe

17 November 2009 11:59 (UTC +04:00)

Bakuâ€“ APA-Economics. New-car registrations in Europe rose 11.2% in October to 1.26 million as scrapping incentive schemes continued to bolster demand in many major West European markets, the European Automobile Manufacturers Association ACEA said Monday, the Wall Street Journal reported.

"In Western Europe, new car registrations totaled 1.2 million units in October, or 16% more than in October last year, mostly led by an increase in the major markets and supported by fleet renewal incentives," ACEA said in a statement.

October counted on average one working day less this year across Europe. The increase marks the fifth consecutive month of growth year-to-year after scrapping schemes to trade in old gas guzzlers for newer and more fuel-efficient cars revived demand, particularly for compact and small cars. Auto makers are, however, preparing for a market slump 2010 in Western Europe as the boost through these schemes is poised to fade out in coming months.

In the January-to-October period, the European market was down 5% compared with the same period last year at 12.2 million cars following a woeful start to the year after new-car sales deteriorated amid tightening credit markets and waning consumer confidence.

Volkswagen AG, Europe’s largest auto maker by sales, saw registrations in Europe come in at 267,948 cars, up 6.3% compared with October 2008 as soaring demand for its core VW and Czech Skoda brands more than offset a 12.4% decline at its Audi AG premium division.

General Motors Co.’s European division posted a 11.5% increase from a year earlier to 104,975 registrations, with the core Opel and Vauxhall brands accounting for 86,789 cars, up 12.6% on a yearly basis. Two weeks ago, GM short down a plan to sell Germany’s Opel and its British sister brand to a consortium led by Austrian-Canadian car parts maker Magna International Inc. The two brands have been loosing market share in recent months amid uncertainty about their future, but the new head of GM in Europe, Nick Reilly, last week voiced hope that new products such as the Astra might help to regain lost ground.

Registrations for GM’s troubled Swedish Saab brand last month tanked 65% from a year earlier to 1,753 cars in Europe, while the Chevrolet brand posted a 38% rise to 16,178 vehicles last month.

U.S. peer Ford Motor Co.’s European operations posted a 15% rise year-to-year to 129,025 cars, thanks to robust demand for both the core Ford nameplate as well as the firm’s Swedish Volvo brand.

Italy’s Fiat SpA, the country’s largest industrial company, saw new-car registrations in Europe come in at 109,481, which translates into a 16% increase from October 2008.

France’s Renault SA posted the strongest gain last month among the region’s major auto makers with a 34% increase to 136,564 cars. French rival PSA Peugeot-Citroen saw European registrations rise 16% year-to-year last month to 168,569 cars.

Japanese giant Toyota Motor Corp. posted a 18% rise last month to 64,051 new-car registrations in Europe as its core brand more than offset a 24% slump to 1,407 cars at its luxury Lexus brand. European registrations for Nissan Motor Co. jumped 57% to 34,725 cars last month. German premium auto makers BMW AG and Daimler AG posted declines of 9% and 3.3% year-to-year to 60,313 and 62,759 cars, respectively.