In Germany, Europe’s largest car market, sales were down 4.7 percent in June. In the first six months of the year, sales in Germany were down 8.1 percent. Opel’s June sales were down 10.1 percent in Germany, Chevrolet’s sales plummeted 17.1 percent, but those of Ford rose 8.7 percent. Peugeot sales plummeted 26.5 percent.
Things are so bad in Europe that it is seen as a good omen when June sales are down a little less than in the previous months. Because the fall is not as steep as before, Reuters sees “signs of bottoming out.”
In Italy, June sales fell 5.5 percent on the year.
In Spain, June sales fell 0.7 percent.
In France, car registrations dropped 9 percent.
Quite possibly, the alleged bottoming out has another reason: Automakers all over Europe increased their rebates. The average discount stood at 12.6 percent in Germany in June, writes Auitomobilwoche. 26.5 percent of all sales in Germany were registered by automakers and car dealers, often just for a day.
I never cease to be amazed how many NEW cars are still being sold in Europe, I mean if the economy looked precarious, I would fix my present vehicle, rather than buy a new one, unless of course I am a first time buyer, then I probably opt for a used car first.
The reverse side is that many German cars are being bought as company cars throughout Europe, one of the perks that does not exist in America, unless you are a CEO, then you get a chauffeur as well.
Don’t forget, almost 70 years of peace and prosperity in combination with a high savings rate enables a significant share of Germans to pay for new cars in cash.
Its the same in the UK, like what the person named kitzler stated, many employees get the Perks with the Job,
Why are dealers doing the following?
“26.5 percent of all sales in Germany were registered by automakers and car dealers, often just for a day”
Incentives from the manufacturers.
See the recent TTAC article about this practice in France …