European car sales post decline in October

European car sales post decline in October

European new car sales fell 2.6 percent year on year in October as economic growth slowed in the UK and a strike in Spain cut demand. The Brussels-based European Automobile Manufacturers Association (ACEA) indicates that European car sales dropped from 1.196 million units a year earlier to 1.165 million units in October 2005. ACEA points out that the progressive deceleration of the economy together with higher interest rates contributed the slowdown in the UK. Furthermore, a two-day strike of Spanish transportation companies impacted the Spanish vehicle market, said ACEA. For the first ten months of the year, sales amounted to 12.98 million units, just 0.3 percent lower than the level in the same period of 2004. This year has been kind to Asian brands in Europe. Sales of South Korea's Kia Motors shot up nearly 53 percent year on year, helping to cement its place as the fastest-growing brand in Europe.