Up to 30pc discounts in Europe 'worrying'
THE level of price discounting and self-registrations by automakers trying to boost business across Europe is now 'worrying' according to senior motoring executives.
Susan Docherty, head of GM's Chevrolet Europe subsidiary, was quoted in 'Automotive News Europe' as saying that Fiat and PSA/Peugeot-Citroen were producing "very scary numbers" with discounts of as much as 30pc off gross sale prices.
"Nobody can make money in Europe when you've got incentives at that level," she said.
She added that the worsening environment was being driven by government austerity measures and declining consumer confidence.
Ford of Europe's sales chief, Roelant de Waard, was also quoted as saying that his company was trying to limit its participation in self-registrations to protect profit margins.
However, he added: "You have to live with the realities of the industry.
"If you don't participate in something that is a phenomenon, that would make you uncompetitive.
"It is a very aggressive environment, and until either demand picks up or capacity is adjusted to the situation, it's unlikely to change.
Some commentators estimate that 30pc of eight-month sales in Germany were self-registrations.
Auto dealers in Germany offered discounts on average of 12.1pc off the price last month.