GM Daewoo is offering €500 ($US651.30) cash rebates on new cars sold in Germany, according to Reuters, joining the push toward using incentives to sell vehicles in Europe’s biggest car market.
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Reuters said the special deals will last into 2005, while a Daewoo spokesman reportedly said 13,000 Daewoos were registered in Germany to the end of October, beating the 12,800 sold in 2003.
Reuters noted that Daewoo’s sales in all of western Europe rose 23.5% in the first 10 months of 2004 to 118,828 units, joining a strong showing by Korean manufacturers who are flourishing by offering low-cost, quality cars at a time of consumer restraint.
The news agency said the spread of margin-eroding price incentives poses mounting problems for European volume carmakers’ profits – incentives are especially aggressive in Germany, but are on the rise in other major markets as well.
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