Auto Sales in Germany Fall 10%

Registrations of new cars in Germany dropped to 261,300 units in May from 290,000 units a year earlier, according to federal auto bureau KBA.

The biggest factor was a 14% slide in fleet sales, KBA says. Deliveries to individuals declined 4%.

May sales equate to an annual sales rate of 2.8 million vehicles in Germany compared with a 3.15 million-unit pace in April, according to Morgan Stanley. The downturn squelched the hope sparked by April's 4% increase in deliveries, which was the first year-on-year gain in six months.

The country's registrations from January through May fell 9% to 1.22 million cars.

May sales in Germany dropped 10% to 56,600 vehicles at the market leading Volkswagen brand. Demand slid 8% for Mercedes-Benz (24,400 vehicles), 10% for Audi (23,000 units) and 11% for the BMW make (21,300 units).

May volume dipped 1% at Ford (19,600 units), tumbled 16% at Opel (19,300 vehicles), and shrank 7% at Skoda (13,000 units).