November Vehicle Registrations Fall in Europe

PARIS – November vehicle registrations in Europe were down 3.5%, bringing the loss for the first 11 months to 1.4%, about where it will be at the end of December and also where it’s expected to stay for 2012, predicts a major auto-financing company in France.

Of the five largest European markets, only Germany showed gains in the month, up 2.6%. France was down 7.7%, the U.K. 4.2%, Spain 6.4% and Italy 9.2%.

However, the loss in Spain was a strong improvement over year-ago’s 18.8% decline, while Germany’s gain was significantly smaller than its 11-month increase of 9.1%.

Germany’s strong automotive growth earlier in the year has kept Europe afloat. Had the country’s vehicle sales just stayed even with 2010, Europe would be down 3.3% for the year.

There is little optimism for the vehicle market in Europe, with unemployment growing and the economy slowing as the European Union debates how to proceed with the euro, its common currency.

Cetelem, the leading lender for car financing at independent dealerships in France, predicts the European market will decline 1%-2% next year.

In France, sales to business fleets have supported the market this year, but with the economic outlook questionable, that segment could slow down, says Flavien Neuvy, a Cetelem analyst.

Advance orders in France fell sharply in October and November, he says, partly because they are being compared with 2010 when orders were high in anticipation of an end-of-the-year change in rules for government incentives.

Among Europe’s auto makers, Volkswagen continued its positive direction, with sales up 5.5% in November and 7.4% for the year. It was the only high-volume group to see a gain. Fiat, PSA Peugeot Citroen, Renault, Ford and General Motors all saw deliveries decline.

BMW and Jaguar Land Rover sales rose in November, but Daimler’s contracted in the month, continuing the year-long trends for the three groups. Nissan, Hyundai and Kia all continued to see sales climb.