French Car Sales Fall
The pace of new car registrations in France slowed abruptly in October as consumers postponed purchases of big-ticket items due to increasing gloom about the economic outlook. Latest data by the car manufacturers’ association showed a drop of 7.3% in registrations last month compared with the same period a year earlier.
Unlike most other automobile markets in western Europe, France held up well over the first nine months, underpinned by the introduction of a system of bonuses and penalties aimed at dissuading consumers from buying fuel-thirsty cars and encouraging them to buy more environmentally friendly models.
Ten days ago, both Peugeot-Citroen and Renault issued warnings that their profitability for 2008 will suffer from the sharp contraction in demand, especially in Europe, where consumer sentiment is at a 15-year low ebb.
