Peugeot, Fiat, GM Lead European Car Sales Drop as Economy Stalls

PSA Peugeot Citroen, Fiat SpA and General Motors Co. led declines in European car sales as the region’s economy slipped closer toward a recession.

Registrations in November dropped 3 percent to 1.07 million vehicles from 1.10 million units a year earlier, the Brussels- based European Automobile Manufacturers Association, or ACEA, said today in a statement. Eleven-month sales declined 1.1 percent to 12.6 million registrations.

Four of the region’s five biggest markets contracted, with France and Italy leading declines at 7.7 percent and 9.2 percent respectively. The European Central Bank cut its 2012 economic- growth forecast for euro countries on Dec. 8 to a range of minus 0.4 percent to plus 1 percent, from plus 0.4 percent to 2.2 percent previously. European manufacturing contracted in November and economic confidence fell.

Peugeot and Renault, France’s largest carmakers, have both announced production-capacity cuts to trim inventories. Turin, Italy-based Fiat is working to stem an increase in debt as its domestic car market approaches a 30-year low.

The ACEA compiles figures from European Union member countries plus Switzerland, Norway and Iceland. Western European car sales, which don’t include figures from the nations that have joined the EU since 2004, fell 2.7 percent to 1 million vehicles.

European sales at Paris-based Peugeot, the region’s second- biggest carmaker, dropped 13 percent, while registrations at Fiat declined 12 percent. General Motors, whose main brands in Europe are Opel and Vauxhall, saw its sales fall 11 percent.