Blog: New Golf discounts
Dave Leggett | 4 February 2004
Looks like Volkswagen's share price is coming under a bit of pressure as investors react to news of VW's 'discounts by stealth' to shift the new Golf. Option pack incentives are said to be the latest enticement being offered by dealers to tempt buyers. Neil Winton has been digging around the subject on behalf of just-auto and I spoke to him yesterday.
One view is that the so-called premium pricing on the Golf gives Volkswagen quite a bit of room to move on discounting. Maybe Volkswagen was smart enough to foresee a price war in the C-segment and factored that into high list prices. But I wonder how Ford - due to renew its Golf-competitor Focus later this year - will view things? On one hand, the high level of competition suggests that margins on Ford's new model will be under pressure too. But on the other, at least the scrap between Golf and Opel Astra leaves the market open. As one analyst puts it, the lack of a 'killer product' in the segment creates a big opportunity.
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