European car sales hit 15-year low

BRUSSELS: European sales of new cars tumbled to a 15-year low last year, carmakers said on Thursday, as recession fears saw people hold off big purchases.

The EU car manufacturers' association ACEA said car sales in December were down nearly 18 per cent from the same month in 2007. Demand for the entire year fell 7.8 per cent across the region���the worst decline since 1993, it said.

Meanwhile, falling yearly inflation in euro nations���confirmed on Thursday at 1.6 per cent in December���should give the European Central Bank the room to reduce interest rates later on Thursday to try and stoke growth.

The EU statistics agency Eurostat said inflation fell back from 2.1 per cent in November as prices for transport fuel and heating oil dropped from a year ago.