2009 Vehicle Sales in Europe Remarkably Stable

LONDON — Collapsing banks, a deep recession, car companies almost going under, factories threatened with closure — now that 2009 has ended, how much do you reckon European car sales fell by? Just 0.7 percent is the answer, with Volkswagen, Ford, Renault and Fiat all selling more cars last year than they did in 2008.

How so, when major markets, such as the U.K. and France, were shrinking by 30 percent or more in some months? Because of scrappage programs, very similar to the U.S. Cash for Clunkers initiative, plus other incentives designed to reinvigorate sales across various European countries, including the U.K., Germany, France, Italy and Spain.

In markets where such programs have not operated, such as Finland, Denmark and Hungary, sales have fallen between 20 and 60 percent. And in Germany, where the scrappage incentive ended late last year, the first signs of a downturn have emerged, with a 4.6 percent drop in December sales. Sales analyst firm JATO Dynamics, source of these numbers, believes this is just the start of a more severe 2010 shrinkage as more scrappage programs end and taxes rise.

The stronger-than-expected European market was highlighted by spectacular gains in sales for some models. The renewed Volkswagen Golf reasserted its dominance as the continent's best-selling car. Sales increased by 24 percent, winning 572,000 customers. The 2nd-place Ford Fiesta, up 44 percent, sold 472,000 units. A 34 percent rise for the aging Fiat Panda was a good result for Fiat, too, one that was undoubtedly fueled by scrappage schemes.

The Peugeot 207, Renault Clio, Volkswagen Polo, Opel Corsa, Ford Focus, Fiat Panda, Fiat Punto and Opel Astra round out the top 10 sellers in Europe for 2009. The lowest on the list, the Astra, sold 276,000 units, a 14.1 percent decline.

In brand rankings, Volkswagen topped the list again. Ford's 2nd place, a position it has rarely held, is a reflection of its exceptionally strong product range. The biggest gainer among the front-runners was Fiat, with a 7.0 percent uplift. The biggest loser was BMW with a 15.5 percent drop. Renault was in 3rd place, up 0.4 percent, followed by Opel/Vauxhall, Fiat, Peugeot, Citroën, Toyota and Mercedes.

Inside Line says: Where there's a will and a well-thought-out program, there's a way to sell product, even in a recession. — Richard Bremner, Correspondent