European New-Car Sales Rose in May

BERLIN—New-car sales in major European countries grew 1.4% in May, the slowest pace since the recovery of car demand kicked in nearly two years ago as some of the region's biggest markets struggled, according to data published Tuesday by European automotive manufacturers.

New-car sales in the European Union and those in the European Free Trade Association rose to 1.15 million vehicles in May, up from 1.14 million a year earlier, according to the European Automobile Manufacturers Association, known by its French initials ACEA.

Of Europe's five largest car markets, new-car sales fell 6.7% in Germany and 3.5% in France. Sales rose 2.4% in the United Kingdom, 14% in Spain and 10.8% in Italy.

Car makers shrugged off the weak performance in May, citing the impact of public holidays in May and pointing to strong demand in Spain, Italy, Portugal and Ireland, countries that were hit hard by the eurozone debt crisis as evidence that the recovery of demand for new cars in Europe remains intact.

Roelant de Waard, head of sales at Ford of Europe, Europe's fourth-largest car maker by sales, said the industry was on track to sell nearly 16 million cars and light trucks this year.

"That's a very positive development. Before the crisis we were at 18 million—there's still a long way to go," he told The Wall Street Journal. "But I don't see a cooling down."

Despite the weak performance in May, new-car sales in the main European countries rose 6.7% to six million vehicles in the first five months of the year, ACEA said.

Volkswagen AG, Europe's biggest car maker by sales saw a decline in sales of every major brand except its sports car maker Porsche AG. Overall, Volkswagen sales slipped to 295,662 vehicles, down 2% from a year earlier.

New-car sales of PSA Group, which includes the Peugeot and Citroë n brands, fell 5.2% to 117,122 vehicles, while Opel, the European division of General Motors Co, saw sales decline 5% to 79,214 vehicles. Sales of Ford vehicles fell 0.6% to 81,492 vehicles.

FiatChrysler Automotive and Renault were the big gainers of the other volume manufacturers in Europe. FCA sales rose 9% to 78,387 vehicles in May, driven higher by Jeep, whose sales more than doubled to 7,558 vehicles.

Renault, which includes the Renault and Dacia brands, sold 108,551 new cars in May, an increase of 5.4%.

Write to William Boston at [e-mail]

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664005

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664039

Access Investor Kit for Volkswagen AG

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US9286623031

Subscribe to WSJ: http://online.wsj.com?mod=djnwires