A trying month for automakers, deepening woes in the European economy are causing a serious decline in sales throughout the continent.
According to the latest sales figures for the month of September, cars sold in France have dropped 18 percent, cars sold in Italy dropped 26 percent, and cars sold in Spain have fallen a staggering 37 percent. Well due to government-imposed austerity measures, sales in Spain and Italy have suffered most.
During the Paris Motor Show last week, many executives admitted that sales in Europe are unlikely to rebound until 2014. Some of the automakers most hurt by the decline include Ford Motor Company and Renault. For the Dearborn, Michigan, based automaker, sales have fallen 32 percent in France and a whopping 40 percent in Spain. The French Renault suffered even worse performance -- a 36 percent decline in hits home market and a 51 percent decline in Spain.
Even European giant Volkswagen failed to yield better results. Volkswagen saw a44 percent drop in Spanish market sales. Meanwhile, France sales fell a more manageable 16 percent. Due to the falling trend line, automakers are trimming sales forecasts in response. Renault anticipates an overall 13 percent drop in sales in France and an 8 percent fall for the European continent.
Back in the United States, a strong sales performance starkly contrasts the bleak European outlook. In particular, Japanese automakers are seeing significant gains. Toyota and Scion saw a 42 percent increase in sales over one year ago. Likewise, Toyota premiership brand Lexus gained a 36 percent boost in sales. A similar story for Honda as well, the company saw a 30 percent sales gain. What's more, Acura sales have increased by 44 percent.
European imports are enjoying strong sales as well. Volkswagen U.S. sales for the month of September have increased by 34 percent. Porsche is up by 26 percent, Audi is up by 27 percent, BMW stayed relatively flat for the month, Mercedes-Benz is up by 7 percent, and Land Rover jumped by 33 percent.
In terms of domestic companies, Chrysler continues to demonstrate month-over-month improvements. In particular, Chrysler Group's Dodge Dart compact saw a 72 percent increase over last month as inventory for the hot all-new sedan begins to build. For the month, Chrysler sales went up by 5 percent, up 18 percent for Dodge, up 10 percent for Jeep, up 4 percent for Ram, and up 51 percent for Fiat. As for GM, Chevrolet sales improved by 2 percent, Buick went up by 8 percent, Cadillac down by 1 percent, and flat for GMC. Finally, Ford remained flat for the month while its Lincoln brand falls another 3 percent.
