European car sales showed the first signs of a tepid recovery in May as showrooms reopened after a two-month shutdown because of the coronavirus pandemic, according to data from the industry association ACEA.
Passenger vehicle registrations in the European Union, the European Free Trade Association and the UK fell 57 percent. While that is the worst May since ACEA started tracking the data in 1990, it was an improvement over the 78 percent plunge in April.
The exact shape of a potential recovery is still unclear as automakers from Volkswagen Group to Fiat Chrysler Automobiles prepare to announce results for what likely will be a devastating second quarter.
In the U.S., Ford forecast a $5 billion loss for the three months through June.
The industry is hoping that consumers will drive an improvement this summer by turning to cars for their holidays instead of flying to far-away destinations. U.S. customers bought SUVs and trucks in droves in May, spurring a sales rebound.
Another positive signal is coming from China, where car sales rose for the first time in almost a year last month. The region has become a focus for European automakers, who are hoping better business there will make up for muted registrations at home.
Despite the rebound, European sales through May have dropped 43 percent, in a sign that a recovery will take some time.
Registrations in the region are forecast to decline by as much as a fifth in 2020, according to Bloomberg Intelligence's Michael Dean.
