Dealers gloomy as new car sales plummet 9% in April

The sale of new cars has fallen dramatically. It was 9% lower in April compared to last April. Since January only 187,228 cars have been sold leaving car dealers gloomy. Even May, usually the best month, does not seem to bring much sales to car companies. According to analysts, the bad situation is a result of poor financial results of Daewoo, and the growing cost of car maintenance. The situation is not likely to get better as the excise tax has already been increased twice this year and expensive loans and high gasoline prices deter potential buyers. Still, several companies seem to be weathering the crisis. French Renault improved its result by 1,621 cars and Peugeot by 2,474. Also Citroen has made a comeback with 1,498 vehicles sold this spring. Only luxury, minivan and off-road car producers have no need to worry, as the market in these sectors recorded respectively 28%, 63% and 18% increases in sales. (Prawo i Gospodarka, page 1, 3) J.K