• Germany's news in English
 
app_header_v3

VW: Golf special offer not bad for prices

The Local · 1 Oct 2012, 16:41

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.

Story continues below…

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
 'One dead and two injured' in Germany machete attack
News channel NTV said there were scenes of panic in the city centre following the attack. Photo: DPA

A 21-year-old Syrian asylum-seeker killed a woman and injured two people with a machete Sunday in the southwest German city of Reutlingen in an incident local police said did not bear the hallmarks of a "terrorist attack".

Munich gunman planned attacks for one year: officials
Vigils continue in Munich to commemorate the victims, seven of whom were teenagers. Photo: DPA

The teenage gunman who killed nine people in Munich on Friday had been planning his attack for a year, according to German authorities.

Germany grapples with enigma of Munich gunman
A debate is already underway as to whether Germany's gun laws, which are already strict, should be tightened further. Photo: AFP

Investigators were seeking clues on Sunday into the mind of gunman David Ali Sonboly, the teen author of one of Germany's bloodiest killing sprees.

Munich shooting
 Social media a blessing and a curse in Munich shooting
The Munich gunman may have hacked a Facebook account to lure some of the victims to the McDonald's fast-food outlet where the shooting began. Photo: DPA

Social networks were both a curse and a blessing in the deadly shopping mall shooting in Munich, as police sometimes found themselves chasing fictitious leads and false alarms.

Munich shooting
Munich pulls together after shopping mall shooting
Photo: DPA

In the chaos after the Munich mall shooting, city residents spontaneously offered shelter to strangers - a move that Chancellor Angela Merkel said showed that Germany's strength lies in its values.

Munich shooting
Merkel deplores 'night of horror' in Munich
Photo: DPA

Chancellor Angela Merkel on Saturday said Munich had suffered a "night of horror" after a shooting spree in the southern German city left nine people dead.

Munich shooting
Munich attacker was shy video game fan
People laying flowers at the site of the shootings. Photo: DPA.

David Ali Sonboly was a quiet, helpful teenager who loved playing video games. His neighbours say there were no warning signs before his deadly rampage at a Munich shopping mall.

Munich shooting
Munich gunman inspired by rightwing Breivik: police
Photo: DPA

The lone teenager who shot dead nine people in a gun rampage in Munich was "obsessed" with mass killers such as Norwegian rightwing fanatic Anders Behring Breivik and had no links to the Islamic State group, police said Saturday.

Munich shooting
Turks, Kosovans and a Greek among shooting victims
Photo: DPA

Three Turkish citizens were among the nine people killed in Germany's Munich mall shooting. Three Kosovans were also among the nine victims.

Munich shooting
Munich gunman was likely not Isis terrorist: police
Flowers laid at the Olympia Shopping Centre underground station. Photo: DPA

According to initial investigations by Munich police, the young man who went on a shooting rampage in Munich on Friday evening was a lone gunman without motive, not a terrorist.

Sponsored Article
Why you should attend an international job fair
Analysis & Opinion
Nice was an attack on France, not on Germany
Sponsored Article
Avoid hidden fees when sending money overseas
National
Bavaria train attack: Were police right to shoot to kill?
National
How to get German citizenship (or just stay forever)
Sponsored Article
Why Swiss hospitality graduates are in demand
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Sponsored Article
Five things Americans should know about voting abroad
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Travel
These 10 little-known German towns are a must see
Sponsored Article
Why expats choose international health insurance
Features
How two gay dads cut through German red tape to start a family
National
Five things to know about guns in Germany
Sponsored Article
Health insurance for expats in Germany: a quick guide
Culture
10 things you need to know before attending a German wedding
Sponsored Article
Avoid hidden fees when sending money overseas
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Sponsored Article
Why Swiss hospitality graduates are in demand
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Sponsored Article
Why you should attend an international job fair
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
10,782
jobs available
Toytown Germany
Germany's English-speaking crowd