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November 21, 2005

GERMANY: Fewer cars built-to-order

Stocks of new vehicles held by the automotive industry have increased over the last few years and this is having a negative impact on sales costs, according to the latest research published by the International Car Distribution Programme (ICDP).

Stocks of new vehicles held by the automotive industry have increased over the last few years and this is having a negative impact on sales costs, according to the latest research published by the International Car Distribution Programme (ICDP).

According to a report in Automobilwoche, the ICDP researchers found that the number of cars built without a specific customer order has increased significantly since 2002. In that year 54% of volume cars did have a specific customer order and were built-to-order. Today that figure has fallen to 41%.

The figure is higher for premium manufacturers, although that too has fallen from 74% to 66% in the same period. Only Japanese manufacturers are increasing the proportion of cars built-to-order, but because of long-distance shipping the overall level is low, at 34% today compared with 27% in 2002.

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