Car Sales Plummet in France, Italy Spain

Registrations of new cars last month dropped 18% year on year in France, 26% in Italy and 37% in Spain as Europe's financial crisis continues unabated, according to local government and industry groups.

In Italy, volume fell to 109,200 vehicles from 147,000 units in September 2011, the country's transport ministry reports. Last month marked the steeped year-on-year decline since March.

In France, carmakers sold 136,900 vehicles in September compared with 167,600 units a year earlier, the CCFA automaker association reports. Sales fell 20% at PSA and Renault but rose 5% at Toyota and 24% for Hyundai-Kia.

September marked France's 11th consecutive month of shrinking car sales. CCFA has lowered its outlook for the full year by two percentage points to a 12% drop.

Vehicle registrations in Spain plunged to 35,100 vehicles last month from 55,600 units in September 2011, according to industry group ANFAC. The organization notes that consumers had boosted sales in August as they rushed to buy cars before Spain hiked its sales tax by three points to 21% on Sept. 1.

ANFAC says it hopes a scrappage program that began this week will stimulate Spanish demand. Buyers of new fuel-efficient cars will receive a €2,000 incentive half from the government and the balance from carmakers.

In the first nine months of 2012, registrations have fallen 20% to 1.1 million vehicles in Italy, 14% to 1.4 million units in France and 11% to 555,000 units in Spain.