Renault, Toyota, VW Lead European Car Sales Decline

[Mr.Krinkle]

Renault, Toyota, VW Lead European Car Sales Decline (Update2)

By Laurence Frost and Chad Thomas

Oct. 16 (Bloomberg) -- European car sales fell in September on weaker demand for Renault SA, Toyota Motor Corp. and Volkswagen AG models as declines in Germany and Spain undermined buoyant business in eastern Europe.

New car registrations fell 1.5 percent to 1.42 million vehicles from 1.44 million a year earlier, the Brussels-based European Automobile Manufacturers Association said today in a statement. Sales for the first nine months of the year gained 0.8 percent to 12.2 million.

European carmakers are looking east for customers amid sagging demand in home markets. A 9.5 percent jump in eastern European sales was not enough to make up for September's 2.1 percent drop in western Europe, which still accounts for most sales.

``One has to wonder if there's a deep malaise in the volume market,'' said Stephen Pope, head of equity research at Cantor Fitzgerald in London. ``Cars aimed at above-average buyers are fine, but mid-market brands are battered.''

Renault, France's second-biggest carmaker, recorded an 11 percent slump in European sales to 105,100 vehicles as customers shunned its aging models. The Laguna III mid-sized car, which went on sale last week, is only the second of 26 new Renault vehicles promised by 2009.

Toyota, Volkswagen

Japan's Toyota had a 7.2 percent decline to 78,479. Sales by Volkswagen, Europe's largest carmaker, fell 6.8 percent to 259,160. The Wolfsburg, Germany-based carmaker's drop ``indicates growing product-cycle pressures,'' Citigroup analyst John Lawson said in a note to investors. VW's Golf compact is due for an update next year.

The Spanish market ``downsized considerably,'' the association said, with registrations falling 7.7 percent to 96,751. Germany's 11 percent decline, to 265,473 units, was exacerbated by a January sales-tax increase that caused a rush to buy cars in the last quarter of 2006.

Eastern European sales growth was powered by 20 percent gains in both Poland and Romania, where Renault assembles its no-frills Logan sedan under the Dacia brand.

Paris-based PSA Peugeot Citroen SA, Europe's second-largest carmaker, reported a 3.5 percent drop to 169,765 vehicles in September. Peugeot says it expects sales to get a boost in subsequent months from its 308 subcompact, which went on sale Sept. 20.

GM, Fiat, BMW

General Motors Corp., Daimler AG, Fiat SpA and Bayerische Motoren Werke AG all posted September sales gains. Detroit-based GM saw registrations advance 6.3 percent to 158,885 for the month, while Ford Motor Co.'s rose 1.1 percent to 170,047.

Daimler sales gained 5.7 percent to 79,580 units. Earlier in the year, the company rolled out new versions of the Mercedes C- Class sedan and a two-seat Smart car.

Fiat, based in Turin, Italy, recorded 99,150 registrations, up 4.2 percent, lifting its market share to 7 percent from 6.6 percent on deliveries of the new Bravo compact, available since February, and the Grande Punto and Panda models. Fiat has increased European sales 21 months in a row.

BMW, the world's biggest maker of luxury cars, had a 3.7 percent sales increase to 88,036 vehicles, boosted by its new X5 SUV and Mini small car. The Mini posted a 39 percent increase in registrations to 17,225 vehicles in September.

http://www.bloomberg.com/apps/news?pid=con...id=aEevnqEjczQo

What a crazy world.

[Newbiewar]

so someone do explain how toyota is going to sell more cars this year then last if in just about every sales area... japan, europe, and usa are losing ground or keeping even... ceo is still holding firm they are predicted to catapult to the number 1 spot...

gm is growing in areas they are declining in...

[CARBIZ]

Maybe Europeans are smarter? Maybe Japan Inc hasn't gotten around to figuring out how to conquer (or has bothered yet) the varied market yet.

[Newbiewar]

Maybe Europeans are smarter? Maybe Japan Inc hasn't gotten around to figuring out how to conquer (or has bothered yet) the varied market yet.

nono... i'm just wondering how many articles are going to suggest their sales are declining and the CEO is going to say, we will still hit our targets

[Newbiewar]

Maybe Europeans are smarter? Maybe Japan Inc hasn't gotten around to figuring out how to conquer (or has bothered yet) the varied market yet.

nono... i'm just wondering how many articles are going to suggest their sales are declining and the CEO is going to say, we will still hit our targets

[Newbiewar]

Maybe Europeans are smarter? Maybe Japan Inc hasn't gotten around to figuring out how to conquer (or has bothered yet) the varied market yet.

nono... i'm just wondering how many articles are going to suggest their sales are declining and the CEO is going to say, we will still hit our targets