A SCRAPPAGE hangover has hit what was once Europe’s largest new car market – and there are fears it could also spread to the UK. Evidence of the shifting fortunes of the motor industry is revealed in latest figures from leading provider of automotive data and intelligence, JATO Dynamics. And they highlight the effects on brands and European sales figures, of declining new car demand in Germany. The home of major players like BMW, Mercedes, Audi and Volkswagen has seen February sales down almost one third - 29.8 per cent – as opposed to the same period in 2009. Last month, it was outsold again by Italy, which is still operating a scrappage incentive scheme worth EUR 1,500 - 5,000, for every 10 year old car traded for a new, low emissions model. One of the biggest casualties of this drop in demand was the Volkswagen Golf, whose lead over Ford’s Fiesta was cut to 4,737 sales. Overall, Golf sales were down 4.0 per cent across Europe last month, mainly due to a 9.4 per cent drop in Germany - its largest market - responsible for approximately almost half of its European sales. David Di Girolamo, head of JATO Consult, said of the figures: “This is the true picture of consumer confidence in the German market, after a series of smaller monthly declines. “If this situation were to affect all markets at the end of their scrappage schemes, we could lose a third of all European new car registrations by mid-2010.” The UK scrappage scheme extension expires at the end of this month, while schemes will be phased out in Spain, Italy and France throughout this year. The continued buoyant sales in these markets ensured overall European sales remained positive in February, versus 2009 with Spain up 47.2 per cent, the UK up 26.4 per cent, Italy up 20.5 per cent and France up 18.7 per cent. Volkswagen’s Golf continues to dominate the sales charts but its reliance on German car buyers puts this position in doubt for the first time in over a year. But the Fiesta, which is much stronger in the UK, Spain and Italy, has benefited and more than halved the sales gap, compared with February 2009. These two remain clear of other top sellers, but the Renault Clio, Fiat Punto and Volkswagen Polo all posted double-digit sales gains. Vauxhall’s new Astra also got off to a strong start, edging the Focus out of the European top ten, which is: 1. Volkswagen Golf , 2. Ford Fiesta, 3. Renault Clio, 4. Fiat Punto, 5. Volkswagen Polo, 6. Peugeot 207, 7. Fiat Panda, 8. Vauxhall Corsa, 9. Renault Megane, 10. Vauxhall Astra. February saw scrappage-influenced small car sales continue to determine brand performances, with Renault a particular beneficiary, from the impressive sales of its Clio. The month saw Italy once again claim the title of “Europe’s biggest new car market”. Dominated by Fiat, it was the only market in Europe selling over 200,000 cars last month and is up 25.2 per cent compared to the same period in 2009. The UK is another strong performer, up 28.7 per cent, but is also a market dependent on scrappage incentives, which has accounted for more than 320,000 sales since its introduction and for one in five registrations last month, according to the Society of Motor Manufacturers and Traders. | 
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