European new car sales have slumped by almost eight percent. The European carmakers association ACEA blames the sharp decline on higher fuel prices.
Other sources see tight credit as the reason for the weakness in sales.

Among western European markets hardest hit,
Spain saw a fall of 24.3 percent followed by Italy at 17.6 percent. Germany, Europe’s biggest car maker and market saw sales slump by 6.2 percent.
The UK fared better but reported a downward trend of 3.5 percent.

Market leader Volkswagen dropped just over 8 percent while Japan’s Toyota suffered a whopping 21.6 percent loss in sales.

A Japanese company has unveiled its eco-friendly car that runs on water, any kind of water, using the company’s generating system which converts water into electrical power.

Kiroshi Hirashawa, head of the company GENEPAX said: “The main characteristic of this car is it will continue to run as long as you have a bottle of water inside for you to ad from time to time.”

According to the Japanese company, one litre of water keeps the car running for about an hour at a speed of 80 kilometers an hour.

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