European car sales end fall with June figures

European car sales end fall with June figures

Based on the data released by the European Automobile Manufacturers Association (ACEA), European car sales rose 4.5 percent year on year to 1.55 million units in June, after a weak start to 2005. ACEA indicates that the strong car sales in Germany and the 18 percent increase in Italy's car sales following the significant drop in May because of strike of car transporters contributed to the huge increase in total car sales. However, cumulative figures for the first six months of the year showed a drop of 1.1 percent in total Europe to 8.2 million units. Slack sales so far this year have put the pinch on carmakers already squeezed by a strong Euro, high raw materials and excess capacity, but the Dollar's appreciation against the Euro this year and softer steel prices are offering some relief, ACEA added.