Car Sales Drop in Western Europe

Auto registrations fell year on year in three of four major markets in western Europe last month, making it increasingly likely the region's sales will drop to their lowest annual volume since 1993, according to national reports.

Germany's sales edged up 0.5% year on year to 260,00 vehicles, thanks to two more selling days last month than in October 2011.

France's vehicle registrations slumped 8% to 162,400 units in October, marking the 12th consecutive year-over-year decline.

In Italy, carmakers sold 116,900 vehicles last month, down 12% from a year earlier, according to the country's infrastructure and transportation ministry. Analysts note that Italy's pace of year-over-year decline was an improvement from September's 26% plunge and the 21% deficit in the January-September period.

October registrations in Spain plummeted 22% to 44,900 vehicles after the government hiked the value-added tax as part of its austerity plan. Industry group ANFAC predicts federal car subsidies introduced last month will benefit volume in coming months.