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A disappointing finish to 2010 for the car industry saw sales finish 4. 7% down compared to 2009 to almost 14 million units, according to JATO Dynamics. Total car sales for 2010 were down for three of Europes Big Five markets compared to 2009: France down 0. 7%, Italy down 9. 2%, and Germany down 23. 4%, while Great Britain and Spain saw marginal growth with an increase of 1. 8% and 3. 1% respectively. With sales and deliveries drying up following the end of scrappage schemes a few months previously, only Germany within this group ended the year on a high, with a sales increase of 6. 9% for December. Sales in central and eastern Europe for 2010 performed well with the majority of the markets in this region showing positive growth compared to the previous year. For example, Lithuania and Latvia ended 2010 up 6. 1% and 18. 6% for the year respectively in stark contrast to 2009s figures, which saw them end that year down 72. 9% and 66. 2%. The strong performance of these markets can be largely attributed to the fact that they had a very poor 2009 and were, in the main, not propped up by scrappage schemes. This means that their recovery from the recession has appeared quicker but is from a lower base. Despite selling 13. 7% fewer Golfs in 2010 than in 2009, Volkswagen remained Europes best selling brand with sales of 492,556 units over the year. According to Gareth Hession, Vice President of Research2011 will be another challenging year for the industry given ongoing government cuts across Europe and a continued lack of consumer confidence, especially for big ticket items. Its concerning that a number of markets saw a significant fall in sales in December, reiterating the fragile nature of the recovery. We expect manufacturers to be very active throughout the year, deploying a range of strategies to support their sales performance.
