European car sales took a dive in June — and the industry looks set to drop for a second straight year

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European Car sales had a marked drop in June, another addition to the downward spiral that is leading to profit warnings across the European car market this year.
At the halfway mark for it’s looking likely there will be a second annual decline in sales.
The industry is blaming uncertainty around Brexit and flattening demand for the drop.

European car sales look set for a second annual decline after new car registrations fell sharply last month.

Sales dropped 7.8% to 1.49 million cars, according to the European Automobile Manufacturers’ Association (ACEA), the worst drop since December.

The drop has caused German manufacturers to issue warnings, with BMW issuing it’s first ever quarterly automotive division loss in a decade in May, and Daimler also issuing a profit warning, Bloomberg reported.

ACEA

ACEA blamed the drop on fewer working days through the month, but the sector has fallen 3.1% since the start of the calendar year.

All this means is that the European car industry is looking at a second decline in as many years. ACEA has already revised it’s prediction for a 1% drop in sales for the year, hurt in part by Brexit and flattening demand.

Trump’s trade war with China also could be one of the reasons for the slump, with the spat prompting car sales to slump in both regions.

The month of May did receive a slight bump in sales of 0.1%, mainly because of people trading in old diesel cars, but it seems 2019’s decline resumed in June.

The Stoxx Europe 600 Automobiles & Parts Index has plunged 15% in the last 12 months.

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Source: Business Insider – feedback@businessinsider.com (Yusuf Khan)