Carmakers See Signs of Recovery in Europe

Stabilizing car sales in Germany and an upswing in demand in France and Spain may be the first sign of a market turnaround in western Europe, analysts say.

Sales in Germany totaled 2.2 million units through the first nine months of the year, down 6% from the same period last year. But September volume slipped only 1% to 247,200 units after falling 5% year on year in August.

In France, September car sales totaled 142,000 units, up 3% from a year earlier. Industry group CCFA predicts the French market, which shrank by 8.5% through the first nine months of 2013, will finish the year 8% below last year's total.

In Spain, industry group ANFAC reports that September sales surged 29% to 45,000 units. Volume was aided by government incentives and one more selling day. Analysts also note that September 2012 sales were damped by a hike in VAT rates.

In Italy, new-car registrations fell again last month but by a relatively mild 3%. Dealers caution that volume was boosted by consumers rushing to buy new vehicles ahead of a VAT hike that took effect this week. Italy's industry group expects a 7%-9% drop in full-year sales.

The U.K. will report September statistics on Friday. The Society of Motor Manufacturers and Traders previously predicted the country's car sales for the month would climb 7%. SMMT expects full-year sales in the U.K. to grow 10% to 1.39 million units.