Deutsche Postbank stock gains amid M&A talk

By Christiaan Hetzner

FRANKFURT, July 16 (Reuters) - The European car market suffered another month of heavy declines in June and its fourth drop overall this year as rapidly deteriorating economic conditions kept new car buyers from leaving the house.

Without even so much as one extra working day to mitigate the bleak figures, new car registrations in June slumped 7.9 percent to 1.43 million vehicles, according to data published on Wednesday by the Brussels-based European automotive industry association ACEA.

Hardly a single carmaker was spared as demand crumbled across most of the continent, even afflicting growth markets in the new Eastern EU member states like Romania and dragging down sales of Renault's (RENA.PA: Quote, Profile, Research) successful low-cost Dacia brand.

Italy and Spain bore the worst of it, though, as new car registrations plunged 20 percent and 31 percent, respectively.

"Rising inflation and soaring fuel prices were among the main factors influencing new registrations," the ACEA said in a statement.

Registrations of new cars in the first half fell 2.2 percent to 8.33 million vehicles as a result of last month's drop, which already followed a 7.8 percent decline in May.

Late on Tuesday, Germany's car industry lobby VDA blamed Spain's severe drop in June on a scrapping incentive for cars older than 15 years that first took effect at the beginning of this month, possibly leading buyers to postpone their purchases.