European new car demand seen stalling in 2007
(BRUSSELS) - Demand for new cars will stall this year in the 27-nation European Union amid a broadly mixed market, the Acea European carmakers association said Tuesday.
"European automobile demand in 2007 is likely to remain at virtually the same level as last year," Acea said in a statement.
While the Italian market was expected to stay firm and France "to mildly recover", Britain and Spain "will likely slow below the trend," the association said.
In Germany, sales were expected to "revive in the remainder of 2007 and in 2008" as new models and tax breaks for lower emissions cars help Europe's biggest car market recover from weak start to the year.
In the first quarter of this year, surging demand for new cars in the EU's newest members helped offset weakness in western Europe, in particular a slump in Germany where demand was dampened by a sales tax hike early in the year.
New car registrations soared nearly 15 percent in the EU's newest members in the first quarter over the same period of 2006 while dipping one percent in western Europe, led by a 10 percent drop in Germany.
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