FRANKFURT (MNI) – The annual decline in the number of new car
registrations in the Eurozone eased further in December, the Association
of European Automobile Builders (ACEA) reported on Friday.

Excluding Cyprus and Malta, data for which were unavailable,
registrations in the monetary union were 3.4% less than in December
2009, compared to November’s 9.5% annual decline. In western Europe (EU
15), registrations were down 4.7% over the same period.

After months of annual declines, new car registrations in Germany
increased 6.9% on the year in December. The rise is most likely due to
base effects, however, as the inflating impact of the country’s
car-scrapping programme had largely worn off by December 2009, resulting
in a sharp drop in registrations by that time.

Supporting this assessment was the monthly drop of 12.2%. Still,
registrations for the full year surpassed industry’s initial
expectations, leaving car-makers upbeat about prospects for this year,
the industry association VDIK said last week.

Base effects also explain the 0.7% annual decline last month in
France, as registrations reached a peak in December 2009. On the month,
registrations rose 17.7% to their highest level since June.

In Italy, registrations were 21.7% lower on the year, while Spanish
registrations were 23.9% less than in December 2009

The latest European Commission survey pointed to an increase in the
intention of consumers to purchase a car over the next year. However,
strong divergences among countries were noted, with both German and
French figures rising to their highest levels since 3Q 2007 and 4Q 2009,
respectively, while intentions in Italy and Spain were at or near record
lows.

National surveys also underline differences in trends from one
country to another.

German households’ propensity to spend remained at a robust level
in December, according to the latest GfK survey. While the indicator
lost ground last month, “the overall trend remains moderately positive,”
GfK said.

Conversely, buying propensity in France, Italy and Spain continued
trending downward to end off 2010.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —

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