Car Sales Drop 8% in Europe

Registrations of new passenger vehicles across Europe fell to 1.15 million units last month compared with 1.19 million units in May 2011, marking the eighth straight month of year-on-year decline, according to industry group ACEA.

The U.K., where demand rose 8% to 162,300 units, was the only major European market to post an advance in May. Unit volume fell in France (16% to 165,700), Germany (5% to 290,000), Italy (14% to 147,100) and Spain (8% to 72,400).

Every major carmaker posted a decline in unit sales last month, including Volkswagen Group (6% to 283,400), PSA (20% to 135,900), General Motors (9% to 100,900), Renault (13% to 97,100), Ford (13% to 86,900) and Fiat (12% to 82,500).

Even luxury brands, which have outperformed Europe's overall market this year, mostly reported lower demand in May. Sales at BMW and Mercedes-Benz fell 4% to 59,100 units and 53,100 units, respectively. Audi bucked the trend with a 4% increase to 66,500 vehicles.

In the first five months of 2012, passenger vehicle sales across Europe have slid 7% to 5.6 million units. The decline was moderated by a 3% increase to 868,200 units in the U.K. Germany's auto market was unchanged year over year at 1.3 million units. But unit sales fell in Italy (19% to 685,000), France (17% to 840,100) and Spain (7% to 332,800).