European car sales rise

European car sales rose by 16 % in December, marking signs of recovery in the sector after another tough year. However, total sales for 2009 were down 1. % on 2008 , according to figures from the European Automobile Manufacturers Association (ACEA). Some countries with scrappage schemes saw rises in sales in 2009 , including France and Germany. Sales in the UK were down 6.4 % for the year as a whole, though December sales were up 39 % compared with a year ago. A total of 14.5 million cars were sold across 28 European countries in 2009. Scrappage effect Ivan Hodac, secretary general of the EAMA, warned that the positive figures for December compared with an extremely bad period for the sector at the end of 2008. He added that some manufacturers would also suffer from the end of many scrappage schemes. EUROPE'S SCRAPPAGE SCHEMES Several European countries have used scrappage schemes to help their car industries The UK's scheme began in May 2009 and has been responsible for a fifth of new car registrations since then according to manufacturers. It is expected to run out in February Germany's car scrappage scheme ended in September 2009 , costing 5 bn euros (£4.4 bn). Car sales rose by 23 % last year France was the first to introduce a scrappage scheme in January 2009. It has now ended, helping car sales rise by more than 10 % Other European countries to introduce scrappage schemes include the Netherlands, Portugal and Spain. They all saw sales fall in 2009 Countries that did not introduce scrappage schemes include Ireland, which saw a 62 % fall in car sales last year "The scrappage schemes mainly benefited the volume manufacturers like Volkswagen, Renault and Fiat," he said. "2010 will be extremely difficult for these companies." Germany saw the biggest rise in sales last year - up more than 23 % compared with 2008. But sales for December were lower than a year ago, following the end of the German car scrappage scheme in September. The UK's scrappage scheme is due to run out in February, with a quota system for manufacturers introduced to share out the remaining money. Mr Hodac also said that Europe was still making too many cars. "Overcapacity has to be addressed as soon as possible, but it will take time," he said. "I'm not saying brands will disappear, but groups will become bigger, brands will change hands, and production will be cut."