(Bloomberg) -- European carmakers couldn’t shake the slump that’s shadowed them since September as new car registrations declined for the third month in a row -- adding fresh worries to an industry already facing declines in its largest market.

  • Passenger-car registrations slid 8.1 percent in the European Union and European Free Trade Association in November from a year earlier, bringing the year-to-date growth to 0.6 percent, according to the European Automobile Manufacturers Association.

Key Insights

  • The downturn, which started with the introduction of new emissions tests, is proving more stubborn than analysts expected. EY Consultancy said in November it saw a pick-up to normal levels soon. Partner Peter Fuss said he now expects December to be negative as well, due to fewer shopping days this month.
  • A bad December could throw 2018 into negative territory overall. Automakers would need to sell 1.05 million cars this month keep pace with 2017. That won’t happen if December registrations drop more than 8 percent from a year earlier.
  • The U.K. and Italy -- two countries mired political and economic uncertainty -- have dragged down sales all year. While both fell in November, Germany, the biggest European market, led the downturn with a 9.9 percent drop in registrations.
  • Carmakers are looking at a tough 2019 as well. BMW AG is facing at least 1 billion euros in headwinds, the company said last week. Worries range from the Chinese market, which is declining, to a no-deal or chaotic Brexit scenario in March.

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  • There are some hopeful signs for carmakers, including a possible reduction of tariffs on cars imported into China from the U.S.
  • Read: Decades of Growth at Risk as China Car Sales Keep Dropping

To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Craig Trudell

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