In Germany, New-Car Registrations Decline

A WSJ NEWS ROUNDUPSeptember 3, 2008;

German new-car registrations in August dropped 10% from a year earlier, to around 214,400 vehicles, amid lackluster consumer confidence, said the German motor-vehicle department KBA.
Adjusted for the two fewer working days last month compared with a year earlier, new-car registrations were off at daily rate of 1.8%, continuing a streak of weak results in recent months. New-car registrations in the first eight months of the year reached 2.11 million, the KBA said. That is a 1.7% rise from 2007, when an increase in the value-added tax at the beginning of the year dented demand.
While significantly better than the performance in other Western European countries, such as Italy and Spain, the slight increase in year-to-date registrations was helped by a flattering comparison with last year, the German car market's worst year since reunification in late 1990.
"The decline in real net wages per capita is having a considerable effect on private car purchases," said Volker Lange, the president of the Association of International Motor Vehicle Manufacturers, or VDIK. The lobbying group called on the German government to help support the industry by aiding consumers to buy newer, more fuel-efficient cars.
Average carbon-dioxide emissions of the newly registered vehicles edged down to 163 grams per kilometer from an average of 166 g/km in the first six months, said the KBA. For the first time, the department registered new passenger cars fulfilling the European Union's strictest emission standards. However, at just 610 vehicles, they remained a small fraction of those that only met the lower emission norms.
On Monday, Italy reported a 26% drop in new-car sales for August, while Spain suffered a 41% plunge. Despite a government incentive plan, France watched its new-car market slide 7.1%.