Automotive News Europe reports new vehicle sales in the EU have hit a 23-year low after registrations plunged 8.5 percent last month. Ford, Peugeot-Citroën and Toyota all suffered the brunt of that fall, but a few automakers managed to make gains despite the negative trend. Opel, Vauxhall and Kia all saw sales increase, and Volkswagen Group managed to increase its market share by 0.8 percent. That's despite the fact that VW Group sales volume declined by 5.5 percent overall. Fiat sales, meanwhile, dropped by 12 percent, fueled in part by an implosion of the Alfa Romeo brand, which endured a sales decline of 32 percent.

Luxury brands are still weathering the downturn fairly well, however. BMW, Mercedes-Benz and Jaguar-Land Rover all managed to increase their sales in January. Interestingly enough, the UK continues to enjoy strong sales, and last month, the country surpassed France to become the second largest auto market in the EU thanks to a sales increase of 11 percent. Registrations in France fell off by some 15 percent during the same time period.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 21 Comments
      Richard
      • 2 Years Ago
      In response Porsche pledges to raise prices every year through the end of the decade (smh)
      • 2 Years Ago
      [blocked]
      x19x19
      • 2 Years Ago
      Duh - Increase the maximum tax rate, in France, to 75%, and wonder why sales decline by 15%. Pretty obvious.
        icemilkcoffee
        • 2 Years Ago
        @x19x19
        The US of A had a top tax rate of over 75% from the 50\'s to the 70\'s. A period of time fondly remembered as the golden age of Pax Americana.
          mapoftazifosho
          • 2 Years Ago
          @icemilkcoffee
          Yes, but there was no global competition! The rest of the world was still rebuilding and getting on their feet until the early 70s...
          A P
          • 2 Years Ago
          @icemilkcoffee
          Funny how one of the first proposals by the new Kennedy admin in 1961 was a tax CUT to spur the economy.....stagflation was the final result in the late 70s and it took a painful recession and a massive tax cut to finally get the government boot off of the neck of the economy. Too bad that lesson was ignored by Barry and his merry band of pointy headed commie college professors in his cabinet.
        Jonathan Knapman
        • 2 Years Ago
        @x19x19
        The 75% tax rate in France a) was struck down by a constitutional court and b) would only apply to 1,500 people in the first place. I see literally no connection between the 75% tax rate and car sales in France.
          A P
          • 2 Years Ago
          @Jonathan Knapman
          Then you are pretty short sighted. How people FEEL about the economy is massively important when factoring in how they spend their money. Massive tax rates (EVERYBODY in Europe is over taxed, period) destroy peoples morale.
          aatbloke1967
          • 2 Years Ago
          @Jonathan Knapman
          "Then you are pretty short sighted. How people FEEL about the economy is massively important when factoring in how they spend their money. Massive tax rates (EVERYBODY in Europe is over taxed, period) destroy peoples morale." Europeans do not have massive income tax rates. However, compared to the US, they do have fewer deductible expenses, such as student loan relief and mortgage interest relief which were phased out in much of Europe in the 90s. Europeans do, however, have far higher levels of indirect taxation such as VAT and various excise duties. That said, Europeans gain extensively from a wealth of reliefs against capital taxation - such as CGT - compared to the US, and as such capital taxation on gains and inheritance is often very low in comparison. And I wouldn't argue, either, if I were you. I'm a cross-border tax consultant and I spent many years within the Big Four on both sides of the Atlantic.
          aatbloke1967
          • 2 Years Ago
          @Jonathan Knapman
          Jonathan, true a court deemed the rate unconstitutional, but it remains in force at the moment. It's likely, however, to now be replaced by an increase in the Wealth Tax rates instead.
        aatbloke1967
        • 2 Years Ago
        @x19x19
        The French marginal tax income tax rate of 75% applies only to the slice of annual income over 1.3 million euros. Other than that, income tax rates are comparable to any other industrialised country with a base rate of 14%, a lower rate of 5.5%, and higher rates to a max of 45% covering incomes made by 99% of the workforce. So to attribute the 75% to the decline in car sales is absolute rubbish. Then again, this is Autoblog.
        ferps
        • 2 Years Ago
        @x19x19
        So a small group of wealthy French people were buying most of the cars in Europe?
      gop.hates.america
      • 2 Years Ago
      I don\'t know how, but this is Obama\'s fault. you are welcome, teabaggers
      ferps
      • 2 Years Ago
      Euro-austerity has proved to be a catastrophe. Let's hope that this doesn't hurt US manufacturers too much.
        • 2 Years Ago
        @ferps
        [blocked]
          thequebecerinfrance
          • 2 Years Ago
          Lax work ethics? Stop watching the news, productivity in France is actually very high, look at the stats and not Fox news. What is killing it is the size of the government which is about 20% of the peope working in France which is way too high. By the way the United States are as much in trouble as Europe, the debt is abyssal and the banks are on very shaky grounds. Be careful about judging others, the crysis is not over.
          aatbloke1967
          • 2 Years Ago
          "Austerity was just a shock back to reality after years and decades of overspending on social programs and the reduction in productivity due to lax work ethics." It's amazing the tripe some people write on here. Having worked for many years in the Big Four, I assure you there's no lax work ethic in western Europe in particular. Nor is the "overspending on social programmes - those programmes are funded for handsomely by the taxpayer, often at levels the US taxpayer would undoubtedly scoff at. But Europeans prefer those models for a better quality of life. The current problems in Europe were instigated by enormous bank bailouts at a time the economy overall was softening, and this has only been enhanced by a unified currency disabling essential economic tools to create inflationary growth by the least wealthy members of the EU.
      gop.hates.america
      • 2 Years Ago
      @juanb60 perhaps you need to read this article http://online.wsj.com/ad/article/france-productivity Google is your friend!
      • 2 Years Ago
      [blocked]
    • Load More Comments
    Advertisement
    2015 Ford Mustang
    MSRP: $23,800 - $46,170
    2015 Jeep Cherokee
    MSRP: $22,995 - $30,795
    2015 Subaru Forester
    MSRP: $22,195 - $33,095
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Toyota Highlander
    MSRP: $29,665 - $44,040
    Advertisement