German Jan car sales...

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Old 02-11-2003, 06:47 AM
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German Jan car sales...

Frankfurt, Feb. 11 (Bloomberg) -- German new car sales fell 3 percent last month as consumers held back from replacing vehicles amid slow economic growth, rising unemployment and the possibility of higher taxes. Production rose 1 percent from a year ago.

New car sales in January fell to 237,000 vehicles, the German carmakers' association, or VDA, said in a faxed statement. Production of cars rose to 410,800 vehicles. Exports rose 3 percent to 301,000 units.

German consumers have been reluctant to make large purchases as unemployment has risen. The government has proposed increasing the tax on company-provided cars by 50 percent. Volkswagen AG, Europe's biggest carmaker, and General Motors Corp.'s Adam Opel AG unit in Germany have offered loans with 0.9 percent interest to spur sales.
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