Europe car sales rise for first time in 19 months

European car sales rose for the first time in 19 months on strong demand in the UK and a rebound in Germany, amid signs that governments may take measures to stem a contraction in the economy of the countries using the euro. Registrations in April increased 2 percent to 1.08 million vehicles from 1.06 million a year earlier, industry association ACEA said today in a statement. Four-month sales fell 7 percent to 4.18 million vehicles. (Click here for the full report or download the PDF, right.) European policymakers have expressed a willingness to take steps to revive the region's ailing economies. Gross domestic product in the 17-nation euro zone fell 0.2 percent the first quarter. At the same time, exports rose in the period and consumer confidence gained in April. Car sales in Europe last month increased the most at Daimler, which rose 11 percent overall because of a 13 percent increase at the Mercedes-Benz luxury brand on strong demand for its A-class compact. Daimler's other brand is Smart, which had a 4 percent sales decline in April. Volkswagen Group, Europe's largest automaker was another April winner with a 10 percent gain led by a 9 percent increase at premium brand Audi. European sales at PSA/Peugeot-Citroen, the region's second-largest carmaker, dropped 10 percent. Ford Motor Co. posted a 1 percent decline in the region. Sales fell 3 percent at BMW Group. General Motors Co.'s European sales declined 4 percent in April, led by a 28 percent plunge at the Chevrolet brand. The company's regional brands of Opel and Vauxhall increased their registrations 2 percent. European sales by Fiat fell 10 percent because of declines at its Alfa Romeo and Jeep divisions. Renault posted a 5 percent increase in European deliveries as its Dacia brand boosted sales by 28 percent. The automaker is forecasting that the region's car market will shrink 5 percent this year, with demand "slightly better" in the remaining three quarters than in the first, Chief Operating Officer Carlos Tavares told reporters on May 14. Nissan sold 7 percent more cars in Europe. Among other Asian carmakers, sales in Europe rose 5 percent at Toyota and 2 percent at Hyundai. ACEA's figures include registrations in the 27-nation European Union as well as Switzerland, Norway and Iceland. Car sales in the region fell 9 percent in January and 10 percent in February and March. Germany, UK markets rise Auto sales in Germany, Europe's biggest economy, increased 4 percent, ending five months of drops. Regional deliveries were helped by the Easter holiday shifting to March this year from April in 2012. "The recovery of sales in Germany is positive and may be an indication that consumers are getting back into the market on signs that austerity in Europe may be close to an end," Gian Primo Quagliano, head of automotive research company CSP in Bologna, Italy, said before the figures were released. "When the car market changes direction, the reason is never just related to technical calendar effects." Registrations surged 15 percent last month in the UK, the only car market of Europe's top five to grow in 2012, and 11 percent in Spain. French auto sales fell 5 percent and demand in Italy dropped 11 percent. Consumer confidence unexpectedly increased in April in the euro area, adding to signals the currency bloc will emerge from a recession in the second quarter. The economy is forecast to stagnate in three months through June and return to growth in the third quarter, according to a Bloomberg News survey of economists. No rejoicing The April were flattered by two extra sales days in many European markets after Easter holidays fell in March rather than April, with last year's weak April also helping the year-on-year comparison. Despite last month's upturn, ACEA pointed out that it was still the third-lowest level of new registrations for the month of April. Carlos Da Silva, manager for European light vehicle sales forecasts at IHS Automotive, said the downward sales trend may be slowly starting to change but advised caution on whether the April rise signaled the 'slowdown-in-the-collapse' that the industry is awaiting for. "The West European market remains at one of its lowest trend levels for a long time, clearly below where it stood even during the 2008 crisis," Da Silva said in a statement. "It's a long way before we can actually start rejoicing." Read more: http://www.autonews.com/article/20130517/ANE/305179978#ixzz2Tq7elFuw Follow us: @Automotive_News on Twitter | AutoNews on Facebook