• Germany's news in English
 

VW: Golf special offer not bad for prices

Published: 01 Oct 2012 16:41 GMT+02:00

An offer of a new Golf for €1,270 less than the previous model has been prompting conversation at the Paris Autosalon show. “The car is not even at the dealerships, but the reduction is already there,” Ferdinand Dudenhöffer, an industry analyst, told the Süddeutsche Zeitung.

He said other car makers would be asking themselves, if the beloved Golf cannot be moved without special offers, how can others sell their cars?

But VW said the offer only applied to online sales where the lower price could be compensated for in other areas.

Opel is also offering reductions, despite large losses, and the opposition in principle, of the company’s head Alfred Rieck who told the specialist magazine Horizont recently, “One should not and cannot go along with everything.” He was not a friend of price wars as they “destroy the value of the brand and also of the car,” he said.

But the Süddeutsche Zeitung said car makers were fighting for a market in Europe that has already started to shrink – from an annual sale of around 15 million a few years ago to less than 12 million now.

Even Daimler recently announced a large savings programme, the paper said, which industry insiders say should save around €1 billion a year after CEO Dieter Zetsche said the €5 billion profit levels of two years ago were not feasible this year.

The producers face a dilemma, the paper said – if they sell their cars cheaply now, it will be difficult to increase prices when the economy picks up. Those firms which can afford it are not taking part in the price war – but some cannot avoid it, leading Fiat head Sergio Marchionne to speak of a bloodbath last summer.

The Local/hc

The Local (news@thelocal.de)

Your comments about this article

17:42 October 1, 2012 by catjones
All VW is doing is reducing the price of their already overpriced cars. It's a shell game.
20:58 October 4, 2012 by neunElf
Goodbye, Citroen-Peugeot, Renault, FIAT, Opel?

VW is flexing its muscles, this is a marathon, not a sprint, the others will be hard pressed to keep up with Herr Piech's strategy!
Today's headlines
Robots woo crowds at Hannover trade fair
Photo: DPA

Robots woo crowds at Hannover trade fair

Collaborative robots and intelligent machinery may have wowed the crowds at this year's Hannover Messe, but experts see German industry as having some way to go towards incorporating them on factory floors in what could become the fourth industrial revolution. READ  

Thousands protest EU-US trade talks
Photo: DPA

Thousands protest EU-US trade talks

Thousands of protesters took to the streets in Europe on Saturday to oppose the world's biggest free trade pact between the US and European Union. READ  

EU-US trade talks prompt German ire
Photo: DPA

EU-US trade talks prompt German ire

In much of Europe any mention of TTIP might receive a blank stare, in Germany the proposed US-EU free trade pact is likely to prompt a volley of angry words. READ  

Auschwitz expert slams Nazi justice record
Photo: DPA

Auschwitz expert slams Nazi justice record

Oskar Gröning, 93, a former Nazi known as the "bookkeeper of Auschwitz", goes on trial in Germany on Tuesday in what could be the last Nazi war crimes trial while an expert calls the country's judicial record 'miserable'. READ  

Turkish Airlines: married pilots are safer pilots
Photo: DPA

Turkish Airlines: married pilots are safer pilots

The general manager of Turkish Airlines has urged single pilots to marry, after the Germanwings tragedy blamed on a pilot with psychological problems. READ  

Germany and Greece
'It hurts when Germans call Greece a failed state'
Thanasis Glavinas outside one of the German parliament's buildings. Photo: Private

'It hurts when Germans call Greece a failed state'

With the war of words – and cashflows – between Greece and Germany showing no sign of dying down, The Local meets one young Greek who's come to see what the Germans have to teach about running a country successfully. READ  

Interior Minister wants quicker deportations
'Loitz doesn't need any asylum seekers' reads the graffiti. Photo:DPA

Interior Minister wants quicker deportations

Interior Minister Thomas de Maizière called on Friday for state governments to speed up deportations of failed asylum applicants, in the latest round in a war of words between the federal government and the states. READ  

VW CEO survives despite departure rumours
Photo: DPA

VW CEO survives despite departure rumours

Volkswagen CEO Martin Winterkorn has dodged a broadside from company chairman Ferdinand Piech which many thought would unseat him from the troubled car maker. Instead, the steering committee has offered him an extension to his contract. READ  

Bayern doctor quits in spat with Guardiola
Tension on the touchline: Guardiola, Schweinsteiger and Müller-Wohlfahrt Photo: DPA

Bayern doctor quits in spat with Guardiola

The resignation of iconic club doctor Hans-Willhelm Müller-Wohlfahrt on Thursday evening threatens to unleash internal chaos at Bayern Munich after their Champions League humiliation at the hands of FC Porto. READ  

Deutsche Bahn flirts with drivers' strike deadline
An InterCity train in Hannover's main train station. Photo: DPA

Deutsche Bahn flirts with drivers' strike deadline

Rail operator Deutsche Bahn has until 3 pm on Friday to respond to demands from the Train Drivers' Union (GDL) for a "reasonable provisional result" in talks over pay, conditions and union representation. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Politics
A Greek learning politics in Germany
Features
The battle of the "Gates of Berlin"
National
Germany's favourite baby names of 2014
National
Germany's 'very poor' lobbying record
National
VIDEO: Mario Draghi suffers anti-ECB confetti attack
Politics
Merkel's 15 years at the top of German politics
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
Features
Spice up asparagus season with The Local's serving suggestions
Sponsored Article
What expat parents should ask before choosing a school
Travel
Lowest of the low: how woman exploited Germanwings crash
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
National
Germanwings co-pilot 'searched suicide info'
Technology
Electrifying 'Ostalgia'
National
Which city is Germany's worst for drivers?
National
'Cannibal cop' gets 8 years
Can the 'nightmare' of a pilot downing a plane be prevented?
National
LIVE: Co-pilot suspected of crashing plane
Pupils mourn lost classmates
National
Freed after 25 years on death row
National
Cologne Cathedral returns from space
Features
Paddy's Day, Berlin style
Is your workload 'out of control'? You're not alone...
National
Why east Germans are happy to get it on on camera
National
What would you do with a 250-year-old pretzel?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
National
Uplifting thoughts to get you through the last week of winter
National
Who wants the Olympics more - Hamburg or Berlin?
National
Last-minute drama of Germany's Eurovision 2015 entry
National
German photographer takes world's top prize
Features
Meet the woman getting Germans to drink more – and better – beer
Gallery
Get inspired for International Women's Day with German heroes
Green party proposes first-ever cannabis legalization plan
Gallery
In pictures: Germany's seven most livable cities
National
Singapore canes Germans for train graffiti
Politics
Surprise! Germans love feeling like they run the EU
Politics
Anger over plan to show women what men earn
Travel
Munich tram fans bicker over new bell
Features
Kafka: puzzling translators 100 years on
Business & Money
France or Germany: Which country really is the best country to work in?
Photo: Police
Rhineland
Student driver crashes tank into family garden.
Photo: DPA
Politics
There was a notable absence at the Anti-Semitism Commission
National
How Dresden bombing still divides Germany, 70 years on
Photo: DPA
Gallery
Take a cute break with this gallery of baby animals
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

7,264
jobs available
Toytown Germany
Germany's English-speaking crowd