The head of the Seat brand has warned that efforts by the German government to boost auto sales this year will have repercussions on the market’s performance next year.
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Quoted in the German magazine Auto Motor und Sport, Rolf Dielenschneider predicted sales of new cars in Germany would plunge to a record low of 2.6m in 2010, because government incentives this year were pulling sales forward.
German authorities are offering subsidies to consumers to buy new cars to replace older vehicles over nine years old.
Although the Seat boss said the move would lead to some 3.6m to 3.7m vehicles being shifted this year, around 30% of that number would have have been sold next year anyway.
New car sales continued to surge in Germany last month as volume rose 40% year on year to 427,000 units according to car makers’ association VDIK. First half registrations were 26% ahead of 2008 at just over 2m units.
