Car Sales in Europe Revive in July, Fall in August

New-car registrations across Europe enjoyed a short-lived spurt in July as volume grew 5% year on year to 1.02 million units. But sales resumed their decline in August, falling to 687,000 units from 722,500 a year earlier, according to industry group ACEA.

The European market for passenger vehicles in January-August shrank 5% to 8.14 million units compared with the same period in 2012.

July sales climbed in Germany, France, Spain and the U.K. but slipped in Italy. All major markets except the U.K. posted lower year-over-year sales in August.

The story was similar for Europe's major carmakers. Among those reporting gains in July were Volkswagen (+4%), Renault (+9%), General Motors (+8%) and Ford (+1%). Fiat sales slipped 1%.

But sales in August reversed for VW (-11%), PSA (-18%) and Ford (-1%). Fiat's sales decline accelerated to 5%. Two bright spots: Sales rose again in August at Renault (+6%) and GM (+1%).

Europe's luxury brands advanced in July and August. The exception was VW's Audi brand, whose sales were flat in July and dropped 6% in August.