December Car Sales Plunge 16% in Europe

New-car sales across Europe plummeted 16% to 838,400 units in December. Full-year sales slumped 8% to 12.53 million units, according to industry group ACEA, which predicts sales will fall an additional 5% in 2013.

Most major markets showed sharp declines last month. Demand dropped 16% to 204,300 units in Germany, 15% to 160,300 units in France, 23% to 86,700 units in Italy and 23% to 51,200 units in Spain.

All four countries accumulated full-year declines. Sales in 2012 dropped 3% to 3.08 million units in Germany, 14% to 1.90 million in France, 20% to 1.40 million in Italy and 13% to 699,600 units in Spain.

The U.K. was the exception last year. New-vehicle registrations advanced 4% to 123,600 units in December and ended the year up 5% at 2.04 million units.

Every full-line carmaker reported fewer sales in December. Group volume for market leader Volkswagen dropped 15% to 200,000 units in Europe. Demand plunged 19% to 91,600 units for PSA, 19% to 76,300 units for Renault, 27% to 64,200 units for General Motors, 27% to 54,600 units for Ford and 18% to 50,700 units for Fiat.

Luxury brands reported mixed results last month. BMW sales improved 1% to 66,200 units, and Jaguar Land Rover's volume jumped 8% to 9,300 units. But sales fell 18% to 39,700 units for Audi and declined 6% to 44,800 units for Mercedes-Benz.

For the full year, VW sales slipped 1% to 3.11 million vehicles. Europe's other major producers reported bigger full-year declines in the region: PSA (-13% to 1.47 million units), Renault (-19% to 1.05 million units), GM (-14% to 1.01 million), Ford (-13% to 939,400 units) and Fiat (-16% to 798,500 units).