European auto sales fell a sharp 7.4 percent to just under 1 million last month, industry data showed yesterday.
The figures for this month, when the full effects of the coronavirus pandemic should be seen, are widely expected to be much worse.
European vehicle sales totaled 957,000 last month, the European Automobile Manufacturers’ Association (ACEA) said.
In the biggest markets, sales in Germany were down 10.8 percent, Italy 8.8 percent, Spain 6 percent and France shed 2.7 percent.
The downturn reflects strong sales at the end of last year when many people replaced their older, more polluting vehicles before the introduction of new, tighter EU emissions standards this year, the ACEA said.
Higher auto taxes coming into effect this year might also have had a similar impact on sales.
The ACEA also said that a broader weakness in the global economy was having a dampening effect, even before the draconian measures being taken to tackle the coronavirus outbreak.
The pandemic has seen many top makers — among them Volkswagen AG, the biggest — suspending production for weeks to come.
The ACEA said it expects new auto sales to drop 2 percent this year, after six straight years of gains, but it is almost certain to have to change that forecast.
In the US, General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV are to partially shut down their US plants on a rotating basis in an effort to contain the spread of the coronavirus.
The measures announced on Tuesday by the United Auto Workers (UAW) followed meetings the union held to protect their members from COVID-19, which was officially deemed a pandemic last week. The UAW said earlier that companies had resisted a request the union made on Sunday to idle their US operations for two weeks.
Automotive manufacturing has virtually ground to a halt in Europe this week after the coronavirus earlier disrupted output in countries including China, South Korea and Japan.
Shutdowns by Volkswagen, Daimler AG and Renault SA span the continent, with several companies choosing to idle production until further notice rather than publicly announce plans for when assembly lines would restart.
Interruptions at US auto factories have been limited so far, with Ford on Tuesday announcing that a parts shortage would temporarily idle its Explorer sports utility vehicle plant in Chicago.
Fiat Chrysler confirmed a second case of a worker testing positive for the virus — the latest being at a Ram pickup plant in Michigan — after disclosing one last week at a transmission plant in Indiana that kept operating.
Additional reporting by Bloomberg
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