Fears of a recession and high fuel prices have caused a further decline in European car sales, it has been revealed.

Figures released by the European Automobile Manufacturers' Association (ACEA) show European car sales fell for the fifth month in succession, with new car registrations in September down 8.2 per cent on 2007 levels.

Car manufacturers General Motors and BMW were the worst hit, and Christoph Steurmer, an analyst with Global Insight, believes that it is not only car sales that the firms need to worry about.

"The situation's much worse than the numbers suggest," he said in a Bloomberg interview, pointing to increasing steel and energy prices and coordinated attempts to reduce the environmental impact of cars.

Indeed, the deepening gloom has prompted the ACEA to call for government support to help members cope with the conflicting goals of facing up to the economic climate while developing more environmentally-friendly vehicles.

"Car makers face increasingly hesitant consumers and call on governments to respond, stimulate the economy, relieve the credit crunch and restore consumer confidence. Only then will consumers have the means and the confidence to invest in new vehicles," commented Christian Streiff, president of the ACEA.

Source:
European Car Sales Fall on Financial-Market Turmoil, 15/10/08
http://www.bloomberg.com/apps/news?pid=20601100&sid=ahDswlaVETfI&refer=germany
Passenger Cars: 8.2% drop in registrations as financial crisis further affects European car markets, 15/10/08
http://www.acea.be/index.php/news/news_detail/passenger_cars_82_drop_in_registrations_as_financial_crisis_further_affects
Fall-out of financial crisis adds to pressure on auto industry, 14/10/08
http://www.acea.be/index.php/news/news_detail/fall_out_of_financial_crisis_adds_to_pressure_on_auto_industry/