FRANKFURT (MNI) – Eurozone new car registrations rose by more than
14.5% in November to 795,719, but were still 3.3% lower on the year, the
Association of European Automobile Builders (ACEA) reported on Friday.

Over the first eleven months of the year, 9.34 million cars were
registered compared with 9.44 million over the same period one year ago.
Figures for Cyprus and Malta were not available.

In Germany, the number of registrations rose 2.6% on the year to
269,144 in November.

Domestic car turnover has been “significantly higher” than last
year,” Matthias Wissmann, president of the carmaker association VDA,
said in early December, adding that exports and production are also
expected to have shown a remarkable gains.

Although the trend is unlikely to be as positive next year, “we are
also optimistic for 2012, if it is possible to stabilize financial
markets,” Wissmann said.

French registrations fell 7.7% compared to one year ago to 179,038.
While French car makers have suffered more than their competitors this
year, consumer spending in the auto sector has held up fairly well in
light of the strains on household budgets.

Indeed, carmakers polled by Insee last month reported that domestic
orders were holding up far better than foreign demand. Auto exports
dropped 2.1% in 3Q. Still, as consumers have become more hesitant to
make large purchases, auto sales are likely to remain sluggish in the
months ahead.

In Italy, new car registrations plummeted 9.2% on the year to
132,579. Consumers’ plans for major purchases in the next 12 months
remain well below the long-term average, according to the European
Commission’s surveys.

Given the deteriorating economic outlook and government austerity
measures, the demand for labour could well remain subdued in both the
private and public sectors, leading many Italians to limit expenditure
to the essentials.

Spanish registrations came to 60,395, down 6.4% from November 2010.
With unemployment north of 22% and projected to rise further, Spaniards
are unlikely to splurge on a new car anytime soon. The Organisation for
Economic Cooperation and Development expects private consumption to
contract by 0.1% next year and recover only in 2013.

Further increases in Eurozone car sales are likely to be limited,
as consumers grow more concerned about their jobs and finances.
Consumers’ employment worries rose to a 19-month high in November, while
their outlook for personal finances slipped to the lowest level in over
two years, according to the Commission’s survey.

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

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