European car sales down 26 percent

To add to the doom and gloom for car manufacturers, European car sales have fallen by 26 percent in November, which represents the biggest monthly drop for over 9 years.

It is a combination of the global recession which has lowered consumer confidence as well as tighter credit conditions which has meant that consumers have cut out unnecessary purchases and as a consequence, delayed new car purchases.

These measures have increased the possibility of General Motors being threatened by bankruptcy.

The Brussels-based European Automobile Manufacturers’ Association said today that car registrations have fallen 932,537 from 1.26 million in 2007.

Sales have fallen by 39 percent at GM and 56 percent at Chrysler LLC as the two US giants have approached Congress and revealed that they are running out of money and a bailout is in order so that they can survive the recession.

Volkswagen AG have survived the best as their deliveries are only down 16 percent.

The UK and Spain have experienced the steepest drops and in Eastern Europe, which was hoped to be a hotbed of new markets, have similarly experienced a reduction in registrations by 7.1 percent.

The issue of bankruptcy at GM has not helped sales as consumer and business confidence has been affected and the fear of a Rover style scenario, when buying a new car, has heightened fears.

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