Tuning Truck

Scrapping incentives in four of Europe's five biggest markets helped boost European production of French minicars last month, but the gains much too small to off set a decline of nearly 40 percent in the region's overall output.

Citroen increased production of its C1 minicar by 9.4 percent in February to 9,703 units while sister brand Peugeot boosted production of the 197 by 6.1 percent to 9,777.

Both cars are made at PSA/Peugeot-Citroen's joint factory with Toyota in Kolin, Czech Republic.

Output of the Renault Twingo was up 8.9 percent to 14,110 units.

All the results are based on estimates from market researcher J.D. Power Automotive Forecasting.

Last week, Renault said it would increase Twingo production at its plant in Novo Mesto, Slovenia, to meet rising demand for the car in France.

Sales of minicars and subcompacts are benefiting government-funded cash incentives in Germany, France, Italy and Spain. Governments are offering buyers bonuses of up to 5,000 euros if they trade in their old cars for new, more fuel-efficient models.

New-car sales in Germany rose 21.5 percent to 277,740 unit in February, the first full month that the country's 2,500 euro scrapping incentive was available.

Another tough month

Despite the successful use of incentives to support new-car sales in some markets, Europe's auto production was down sharply last month as companies continued to try to sell off their inventories in a weak market.

Output at Europe's car assembly plants fell 39.7 percent to 1.07 million units compared with the same period last year, according to J.D. Power Automotive Forecasting. Production was down 41.3 percent to about 2.03 million units after the first two months of 2009.

During the same period, new-car sales in Europe fell 22.6 percent to about 2.5 million cars, according to the European car manufacturers association, ACEA.

Honda suffered the biggest production decline in February. Output at its plant in Swindon, England, plunged 90.5 percent to 2,586 units. The results will not improve fast as the Japanese automaker has announced the plant will be closed until at least June.

Honda makes the Civic and CR-V at the factory.

February was also tough for premium automakers Cadillac, Saab and Mercedes-Benz. All three suffered production declines ranging from 50 percent to 90 percent.

Just three brands - Alfa Romeo, Hummer and SsangYong - made more cars last month than in February 2008, but the increases are slight or misleading.

Alfa Romeo's production rose to 9,319 from just 1,105 units in February 2008, which was when the Fiat Group Automobiles subsidiary's main plant of Pomigliano d'Arco, Italy, shut down for refurbishment.