• Germany edition
 
VW: Golf special offer not bad for prices
Photo: DPA

VW: Golf special offer not bad for prices

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

Don't miss...X
Left Right

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
Merkel targets 'shadow banks' in Lindau speech
Chancellor Angela Merkel opens the 2014 Lindau meetings. Photo: DPA

Merkel targets 'shadow banks' in Lindau speech

Chancellor Angela Merkel has opened an economics conference in Lindau, Bavaria, with a call for more regulation of so-called shadow banks. READ  

Dying town centres seek the miracle cure
A senior couple walk down Delmenhorst's main pedestrian promenade, amid a string of empty shops. Photo: Tomas Urbina

Dying town centres seek the miracle cure

Home to two-thirds of Germany's population, many of its small cities and towns are struggling to revive their declining centres. The Local's Tomas Urbina reports from Delmenhorst in Lower Saxony, as it tries to dig its way out of the economic doldrums. READ  

Quick-thinking trucker stops wrong-way driver
Signs warning drivers against entering a motorway off-road. Photo: DPA

Quick-thinking trucker stops wrong-way driver

Erich Mairleitner thought Tuesday would be another ordinary day hauling a load along the A3 motorway, but found himself the hero of the hour after stepping in to stop an accident. READ  

Germany ready to send arms to Iraqi Kurds
Usula van der Leyen and Frank-Walter Steinmeier. Photo: DPA

Germany ready to send arms to Iraqi Kurds

Germany is ready to send weapons to support Iraqi Kurds in their battle against the "barbaric" jihadist militants of the Islamic State, Foreign Minister Frank-Walter Steinmeier said Wednesday. READ  

The Local List
10 things to do before summer is really over
Photo: DPA

10 things to do before summer is really over

The German weather service (DWD) is blaming "Wild Wilma" for blanketing the country in cooler temperatures, but we know it's going to get a lot colder before the end of summer. This week's Local List challenges you to take advantage before autumn really sets in. READ  

Energy policy falls foul of federal auditors
Lightning illuminates the sky above a wind turbine. Photo: DPA

Energy policy falls foul of federal auditors

The Federal Court of Auditors (BRH) has sharply criticized Chancellor Angela Merkel's energy policy, saying that the previous coalition government failed to produce adequate financial plans. READ  

China orders German's execution for murders
A paramilitary guard stands inside Beijing's No.1 Detention Centre. Photo: DPA

China orders German's execution for murders

Update: A German man has been condemned to death in China for murdering his ex-girlfriend and her partner in a frenzied attack, it was reported on Wednesday. READ  

German aid planes to Iraq delayed
All filled up and nowhere to go. Photo: DPA

German aid planes to Iraq delayed

A German military flight to the conflict-addled region in northern Iraq has been delayed because Turkey denied landing permission for the layover at Incirlik airbase, according to a spokesman for the air force. READ  

Bomb shuts down A3 motorway
Photo: DPA

Bomb shuts down A3 motorway

A controlled detonation of a 500-kg bomb from the Second World War has left a 20-metre-wide crater in the middle of one of Germany's busiest traffic corridors on Tuesday night. READ  

Saxony schools get top marks
Photo: DPA

Saxony schools get top marks

A country-wide analysis has shown that Saxony has the best schools and Berlin has a lot of homework to do. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Culture
Sprechen Sie Deutsch? 10 reasons why you should.
Photo: DPA
National
Berlin's senate puts the brakes on Über
Photo: DPA
Gallery
The mysteries of Berlin's abandoned theme park
Photo: DPA
Culture
How I deal with my German Hausmeister
Photo: Ingrid Eulenfan/flickr
Gallery
Nine German treats you'll want to eat right now (and one you won't)
Photo: DPA
Society
Who's getting German citizenship?
Photo: DPA
Culture
How World War I changed Germany forever
Photo: APA/DPA
Gallery
The 12 best words in Austrian German
Photo: DPA
Society
'Look at those German shanty towns!'
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
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

3,322
jobs available
Toytown Germany
Germany's English-speaking crowd