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EU Car Sales Tumble

( From ​NewEurope, Fox Business, ACEA )

French Peugeot group took the biggest hit from the slumping EU car sales, as the company sold 16.3 per cent fewer vehicles than a year ago. On 8 February, France’s government said it would do whatever it takes, in order to help PSA Peugeot Citroen. French Budget Minister Jerome Cahuzac said in a TV interview, that it is possible for the French government to consider investing in Peugeot. “This company must not and cannot disappear and we must do what it takes for this company to survive,” Cahuzac told BFM television.

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Moreover, Italy's Fiat carmaker also suffered from a major sales drop, as sales figures decline by approximately 12 per cent. On October, the company asked from the Italian government, to enhance Italian cars exports outside Europe. In detail, Italian-Canadian manager of FIAT Sergio Marchionne said that FIAT could become more competitive to produce and export cars to the US market.



​​​Ford, which is cutting back its European production capacity with three plant closures to stem regional losses, recorded a 26 percent sales plunge to 61,544 cars. Despite weak demand at home, Volkswagen increased its share of European sales. Its registrations fell 5.5 percent, a more modest decline than the market's, as the premium Audi nameplate fell just 2.1 percent. Its two German luxury rivals proved even more resilient, with BMW brand sales rising 9.4 percent and Daimler's Mercedes-Benz gaining 4.7 percent.



​​Sales by Renault's low-cost Dacia brand rose 8.5 percent, limiting the group's overall decline to 6.1 percent. The troubled Renault brand saw domestic orders rebound 12 percent last month, according to a dealership survey by La Lettre VN. Overall French orders fell 3.5 percent, the trade publication said, in a sign that registrations may stabilize in the coming months after a 15 percent January slide.



​​South Korea's Kia also fared well, with registrations surging 7.7 percent, while affiliate Hyundai's sales fell just 2.2 percent. Italy's Fiat posted a 12.4 percent sales decline, despite a more modest 4 percent drop for the Italian carmaker's namesake brand. The upscale Alfa Romeo marque, upon which Fiat chief Sergio Marchionne is pinning the group's recovery strategy, saw its European sales collapse 37 percent

The European Automobile Manufacturer’s Association (EAMA) announced that EU car sales reached a historic low for a single month since ACEA first took records in 1990. In January, demand for new cars declined by 8.7% in the EU compared with the same month in 2012 ( New registrations amounted to 885,159 units ), continuing a downward trend commenced sixteen months ago. ( See graph below )

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