EU: Fiat, Renault, Peugeot led sales to 14 year low

Adnkronos International English (Turin) - Fiat, Renault and Peugeot Citroen led European car sales to a 14-year low last month as economic growth stalled because of the region's sovereign-debt crisis.

Registrations in the 27-member European Union plus Switzerland, Norway and Iceland fell 6.6 percent from a year earlier to 1.5 million vehicles, the lowest figure for March since 1998, the Brussels-based European Automobile Manufacturers' Association said today in a statement. First- quarter sales dropped 7.3 percent to 3.43 million vehicles.

Peugeot, Toyota and BMW are forecasting a contraction of about 5 percent of the region's auto market this year, the fifth consecutive annual decline, as governments in the region struggle to contain debt.

"There's an overall confidence crisis in Europe. This is not an atmosphere that leads to optimism," Carlos da Silva, an analyst at IHS Automotive, said before the figure were released. "Private as well as public car consumers remain cautious."

Car sales in France, Europe's second-biggest market after Germany, plummeted 23 percent. Deliveries in third-ranked Italy plunged 27 percent.

Strike Hurts Fiat

European sales by Fiat, Italy's largest vehicle manufacturer, tumbled 26 percent to 81,469 cars, according to the association, also known as the ACEA. Deliveries were hampered by a truckers' strike in the country, Turin-based Fiat said today in an e-mail.

Peugeot, Europe's second-biggest automaker after Volkswagen, announced a broad alliance with General Motors on 29 February that will include joint purchasing and vehicle development in an effort to revitalize their European operations. The Paris- based carmaker's sales in the region fell 19 percent to 165,118 vehicles last month. Renault, France's second-ranked carmaker after Peugeot, posted a 20 percent drop in European sales to 112,894 units.

Sales in Europe by Ford fell 7.6 percent in March from a year earlier to 131,410 vehicles, while GM, the world's biggest carmaker, posted a 10 percent drop to 129,912.

The market's decline was held back in part by growth at German carmakers. Volkswagen's European sales gained 1.7 percent in March to 352,455 vehicles, while BMW's increased 3.2 percent to 93,313 and Daimler's rose 5.1 percent to 73,899.