NEW CAR SALES LEAP 15.7% IN OCTOBER, FIAT UP 15%

NEW CAR SALES LEAP 15.7% IN OCTOBER, FIAT UP 15%

(ANSA) - Rome, November 2 - New car sales in Italy leapt 15.7% last month, over October 2008, the biggest jump so far this year and the fifth monthly rise in a row, sector sources said on Monday.

Year-on-year sales of cars in the Fiat group climbed 15.05% which allowed the Italian automaker to boost its market share to 32.548, from 31.52% in September.

Although this was lower than its share of 32.76% in October 2008, Fiat's market share for the first ten months of the year averaged out at 33.12%, up from 31.98% for the same period last year.

Within the Fiat group, Fiat marque year-on-year sales last month rose 14.57% and Lancia sales leapt 28.1%, while Alfa Romeo sales slipped 1.08%.

Car sales have been on the rise in Italy since the government introduced green 'cash-for-clunckers' initiatives as a means to boost the economy in the wake of the global economic downturn.

According to the Italian Automobile Club (ACI), 110.407 of the 195,545 new cars sold last month took advantage of the initiatives, a 1.26% increase over September, and in 89.6% of these cases the buyer junked their old car.

The incentives, which expire at the end of the year, include a cash bonus of 1,500 euros for the purchase of new cars, those with a Euro 4 or Euro 5 emissions rating, in exchange for trading in old ones with an emissions rating of Euro 2 or less, which will then be sent to the junk yard.

A bonus of 2,500 euros will be given for the trade-in of light commercial vehicles with high emission ratings - Euro 0, 1 and 2 - in exchange for new, less polluting vehicles.

A 1,500-euro bonus will be given for the acquisition of vehicles which run on electricity, hydrogen, methane or natural gas regardless of whether an older car is traded-in or junked.

Fiat and other automakers, as well as dealers, are urging the government to extend the initiatives through next year.