Figures from the Brussels-based European Automobile Manufacturers’ Association (ACEA)show sales fell in September for the second month this year as a sluggish British market offset gains made in France, Italy and Spain.
Registrations were 2 per cent down on previous year at 1.47 million vehicles, according ACEA data.
Sales in the UK suffered a 9.3 per cent slump while Germany – whose business leaders are becoming increasingly worried by the impact of Brexit – saw a sales slide of 3.3 per cent.
The UK figures revealed a sixth straight monthly decline and the first drop for September since 2011 when sales finally began rising again in the wake of the 2009 financial crisis.
Germany’s industrial leader fear they could be among the hardest hit by a no-deal Brexit after a landmark report revealed car manufacturers like Mercedes-Benz and BMW would lose £6 billion a year in sales in the UK in the event of Britain and the EU reverting to a WTO tariff system.
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Factory closures and the loss of 18,000 skilled manufacturing jobs would be inevitable if price rises led to a sharp plunge in demand from Britain – one of the biggest markets in the world for expensive German-made cars, with about one in seven of all the cars the country makes being sold to the domestic UK market.
Chancellor Angela Merkel has been bullish over the UK’s decision to leave the EU but the figures from respected consultancy firm Deloitte may cause her to rethink her strategy in light of the dire consequences a no-deal scenario would bring.
September usually sees a spike in new sales as drivers seek to secure new number plates.
But while demand fell in the UK and Germany, other markets in the top five gained, with France rising 1.1 per cent, Italy 8.1 per cent and Spain 4.6 per cent.
The ACEA reports sales data from all EU countries except Malta, as well as Switzerland, Norway and Iceland.
Its latest figures were published after French carmaker PSA Group announced it was shedding 400 jobs at its Vauxhall plant in Ellesmere Port as it adapts production to declining sales.
PSA Group, which owns the Vauxhall and Opel brands, said the factory needed to improve its competitiveness to match the company’s French sites.
The Ellesmere Port plant near Liverpool makes Astra sedans, demand for which has been falling.
It currently employs 1,800 people. The 400 job cuts will be completed by the end of the year and will be voluntary departures as production shifts will be reduced from two to one.
Bosses acknowledged the uncertainty about the future trade deals between the UK and the European Union after Brexit also played a role in the decision.
Investment decisions in the UK are on hold until the company gets better clarification on the full consequences of Brexit.
Speaking at last month’s Frankfurt motor show, PSA chief executive Carlos Tavares said the company would narrow down possible Brexit scenarios to two by Christmas and demanded guidance from authorities on possible outcomes.