European car sales up 8% in FebruarySat, 22 Mar 2014 09:02:00 EST
Three weeks ago an analyst increased projections for European car sales this year, expecting them to climb three percent compared to last year instead of 2.7 percent. That number is a postive sign after years of hard times but it turns out February was especially good, overall European sales climbing eight percent on a wave of southern European recovery and discounts - and this comes after five months of gains including January's 7.2-percent jump over the year before.
The only country of Europe's five largest markets to post a decline was France, just as it did in January, Germany, the UK and Italy posting solid double-digit numbers, Spain rocking the charts with an 18-percent increase because of a government program to encourage trade-ins.
The only brand to miss the wave was Volkswagen, dropping 0.8 percent as it watched the double-digit growth at sister brands Audi, Seat and Skoda lift the Volkswagen Group sales up by seven-percent. Peugeot overcame flat sales at Citroën to improve the group by 3.5 percent, BMW and the Mercedes-Benz/Smart combo rose by four percent, the Fiat group jumped 5.8 percent, Ford was up 11 percent, the Renault Group 11.5 percent, General Motors 12 percent and the Toyota clan by 14 percent.
But every silver lining has a dark cloud, in this case it's the level of discounting that's pumping up sales. One analyst compared the current situation in Europe to the profit-killing discounting carried on by GM and Chrysler before bankruptcy, another - less dire - cautioning patience instead of touting recovery. Even so, said another analyst, "Demand has been depressed for so long that it can only go up."
By Jonathon Ramsey
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