Auto Demand Slumps in Italy, Spain

Sales of new cars in Italy plummeted 20% to 1.4 million units in 2012, the lowest level since 1979, according to Federauto.

The national dealer group says volume dropped 22% to 86,700 vehicles in December.

Federauto predicts Italy's auto sales will slide to 1.33 million vehicles this year.

Spain's new-car registrations fell 13% from 2011 to 699,600 units last year, ANFAC reports. That is the lowest annual total since the industry group began tracking sales in 1989.

Spain's December sales tumbled 23% to 51,200 vehicles.

Full-year demand in Spain fell at most major brands, including Citroen (-11% to 52,500 vehicles), Ford (-21% to 51,100 units), Opel (-15% to 49,600 units), Peugeot (-13% to 55,600 units), Renault (-17% to 52,600 units), SEAT (-25% to 54,900 units) and Volkswagen (-13% to 62,500 units).