• 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)

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
Nazi-stolen painting put on display, sort of
The Wiesbaden Museum in Hessen. Photo: DPA

Nazi-stolen painting put on display, sort of

The Wiesbaden Museum was once a collection house for art stolen from Jewish owners by the Nazi. With one painting, they hope to right at least one wrong while bringing awareness to its ongoing restitution work. READ  

JobTalk Germany
When should interns demand to get paid?

When should interns demand to get paid?

After a woman was denied pay for working at a supermarket as an 'intern' for eight months with no wages, The Local looks at the warning signs for abusive internships. READ  

Single parents, common law families on rise
Photo: DPA

Single parents, common law families on rise

The German family structure is changing, with nearly a third of every family no longer living in the "classic model" and big differences in what family looks like in the former East and West, statistics agency Destatis announced on Monday. READ  

Four arrested in raids against Isis
Photo: DPA

Four arrested in raids against Isis

Police raided 15 homes across Germany over the weekend and arrested four suspected supporters of the Islamic State (Isis). They are alleged to have smuggled a teenager and thousands of winter military clothes to the terrorist group's frontlines. READ  

Munich Refugee Crisis
'There's no room but we have nowhere else to go'
Hassan, pictured outside the Bayernkaserne with two of his children, arrived in Munich from Syria. Photo: Mariane Schroeder

'There's no room but we have nowhere else to go'

Around 300 refugees are arriving in Munich each day, but accommodation centres are full. With authorities struggling for answers, The Local meets those at the sharp end of the crisis. READ  

Train Strike
Buses up prices, football fans brawl, trains return
Photo: DPA

Buses up prices, football fans brawl, trains return

UPDATE: Deutsche Bahn trains are chugging along again after a 50-hour train strike cost the service "tens of millions" and brought travel headaches across the country, leaving millions of passengers struggling for transportation over the weekend as well as at least one mass brawl in its tracks. READ  

Foreigner toll to hit motorways only
Transport Minister Alexander Dobrindt. Photo: DPA

Foreigner toll to hit motorways only

Transport Minister Alexander Dobrindt plans to limit his road toll for foreigners initially to motorways only, Spiegel reported on Sunday. READ  

Criminals blow Berlin Sparkasse wide open
The damaged bank branch. Photo: DPA

Criminals blow Berlin Sparkasse wide open

Criminals robbed a Berliner Sparkasse bank branch early on Sunday morning - using a bomb. READ  

French retread path to Berlin finance ministry
French Economy and Finance Ministers Emmanuel Macron (l) and Michel Sapin. Photo: DPA

French retread path to Berlin finance ministry

French and German ministers are due to meet on Monday to discuss ways of boosting growth in Europe's two biggest economies, as Paris called on Berlin to step up investment. READ  

Lufthansa pilots to strike for 35 hours
Grounded. Photo: DPA

Lufthansa pilots to strike for 35 hours

UPDATE: Pilots' union Cockpit has called a new 35-hour walkout at Lufthansa starting Monday, hours after a weekend-long rail strike finished. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: Facebook
Society
German motorcycle gang joins Isis fight
Photo: DPA
Politics
UKIP ‘seeks EU pact’ with German satirical party
Photo: DPA
Travel
This is the man who has stopped Germany's trains
Photo: Shutterstock
Business & Money
Expats: Should I stay or should I go?
Photo: DPA
Gallery
PHOTOS: World's biggest erotic fair opens in Berlin
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: Shutterstock
Business & Money
Which expat foods do you miss the most?
Sponsored Article
International School on the Rhine: a legacy
Photo: Shutterstock
Business & Money
How to get hired at a Berlin startup
Photo: DPA
Gallery
The ten richest people in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
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

3,441
jobs available
Toytown Germany
Germany's English-speaking crowd