All about cars

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 1.6% 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.

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.

"The scrappage schemes mainly benefited the volume manufacturers like Volkswagen, Renault and Fiat," he said.

"2010 will be extremely difficult for these companies."

Mr Hodac agreed 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."

Source: International news round the clock