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European car sales up in December | European car sales up in December |
(about 2 hours later) | |
European car sales rose by 16% in December, marking signs of recovery in the sector after another tough year. | European car sales rose by 16% in December, marking signs of recovery in the sector after another tough year. |
However, total sales for 2009 were down 1.6% on 2008, according to figures from the European Automobile Manufacturers Association (ACEA). | However, total sales for 2009 were down 1.6% on 2008, according to figures from the European Automobile Manufacturers Association (ACEA). |
Some countries with scrappage schemes saw rises in sales in 2009, including France and Germany. | Some countries with scrappage schemes saw rises in sales in 2009, including France and Germany. |
Sales in the UK were down 6.4% for the year as a whole, though December sales were up 39% compared with a year ago. | Sales in the UK were down 6.4% for the year as a whole, though December sales were up 39% compared with a year ago. |
A total of 14.5 million cars were sold across 28 European countries in 2009. | A total of 14.5 million cars were sold across 28 European countries in 2009. |
Scrappage effect | Scrappage effect |
Ivan Hodac, secretary general of the EAMA, warned that the positive figures for December compared with an extremely bad period for the sector at the end of 2008. | Ivan Hodac, secretary general of the EAMA, warned that the positive figures for December compared with an extremely bad period for the sector at the end of 2008. |
He added that some manufacturers would also suffer from the end of many scrappage schemes. | He added that some manufacturers would also suffer from the end of many scrappage schemes. |
EUROPE'S SCRAPPAGE SCHEMES Several European countries have used scrappage schemes to help their car industriesThe UK's scheme began in May 2009 and has been responsible for a fifth of new car registrations since then according to manufacturers. It is expected to run out in FebruaryGermany's car scrappage scheme ended in September 2009, costing 5bn euros (£4.4bn). Car sales rose by 23% last yearFrance was the first to introduce a scrappage scheme in January 2009. It has now ended, helping car sales rise by more than 10%Other European countries to introduce scrappage schemes include the Netherlands, Portugal and Spain. They all saw sales fall in 2009Countries that did not introduce scrappage schemes include Ireland, which saw a 62% fall in car sales last year | |
"The scrappage schemes mainly benefited the volume manufacturers like Volkswagen, Renault and Fiat," he said. | "The scrappage schemes mainly benefited the volume manufacturers like Volkswagen, Renault and Fiat," he said. |
"2010 will be extremely difficult for these companies." | "2010 will be extremely difficult for these companies." |
Germany saw the biggest rise in sales last year - up more than 23% compared with 2008. But sales for December were lower than a year ago, following the end of the German car scrappage scheme in September. | Germany saw the biggest rise in sales last year - up more than 23% compared with 2008. But sales for December were lower than a year ago, following the end of the German car scrappage scheme in September. |
The UK's scrappage scheme is due to run out in February, with a quota system for manufacturers introduced to share out the remaining money. | The UK's scrappage scheme is due to run out in February, with a quota system for manufacturers introduced to share out the remaining money. |
Mr Hodac also said that Europe was still making too many cars. | Mr Hodac also said that Europe was still making too many cars. |
"Overcapacity has to be addressed as soon as possible, but it will take time," he said. | "Overcapacity has to be addressed as soon as possible, but it will take time," he said. |
"I'm not saying brands will disappear, but groups will become bigger, brands will change hands, and production will be cut." | "I'm not saying brands will disappear, but groups will become bigger, brands will change hands, and production will be cut." |
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