Bad European car sales are about to get worse. French September car registrations dropped 18 percent year-on-year, while Spain’s plunged 37 percent, Reuters reports.
The Spanish number is especially bad because the sales tax was raised in September, which brought sales to August. A new cash-for-clunkers program was introduced today, which made buyers delay their purchases.
January through August, European car sales were down 7.1 percent, but market observers expect the European market to accelerate this downward trend. Severe discounting kept volume halfway alive through the preceding months. With inventories and discounts dwindling, car sales are expected to drop in earnest.