New figures have revealed that car sales fell again in Europe during 2005.

A study by the European Car Industry Association claims that the number of new cars sold fell 0.7 per cent to 15.2 million in 2005.

While there were some bright spots, with good European sales for Japanese manufacturers, this only compounded the misery for many European and US firms, which suffered sharp downturns over the course of the year.

PSA Group, Ford, and Fiat all experienced significant losses during 2005, the report reveals, but sales rose by 12 per cent at Suzuki, ten per cent at Honda, and seven per cent at Mitsubishi.

European companies "must invest in new technologies, be at the forefront of innovation, be flexible and efficient," claims Mike Steventon, KPMG's head of automotive in the UK.

"Simply having a strong brand is not enough to operate successfully in a global industry."

Volkswagen, the German company that produces Audi, Seat, Skoda, Bentley and Lamborghini vehicles, remained in top spot for European brands, with the firm seeing 2005 sales increase by three per cent to 2.9 million.



Ÿ Adfero Ltd