EUROPEAN CAR SALES HIT SLUMP.

Consumers are thinking twice before buying a new car as fears of a global recession rise. This is hurting sales and threatening to further weaken the automotive industry, the European Automobile Manufacturers Association warned on Wednesday.

New vehicle registrations fell 8.2% year-on-year in September despite two extra working days, as the fallout from the financial crisis hit auto manufacturers hard, reported the European Automobile Manufacturers Association, which represents the 15 major European vehicle manufacturers.

On Tuesday, Daimler said it will drop its Sterling truck brand in March 2009 and close two Sterling plants to address depressed demand across the industry. The company also said it was cutting around 3,500 jobs in the U.S. and Canada to cope with the slump in the economy.

Source: Forbes