Spanish car sales fell 6% in the first two months of the year while prices fell 7%, increasing the chance that the forecast for a 3% decline in 2008 could come true.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The situation is prompting car makers to deepen discounts and launch a series of apparently desperate promotional efforts to attract buyers.
According to dealership federation Faconauto, discounts increased 14% in January-March as a slew of brands all cut their prices.
Spain’s economy is suffering from soaring interest rates, a mortgage crisis and tighter credit which is expected to curb consumption of high-price consumer goods such as cars.
On Tuesday, Skoda launched a quirky marketing campaign. The Czech company said it has hidden a Scout model somewhere in Spain and will give it to whoever finds it. The VW brand has set up a website to sign up participants.
Meanwhile, Italian brand Fiat has offered full refunds to Spanish customers who want to return the newly launched Croma sedan.
“Of course, this won’t happen, as customers will be satisfied with the vehicle but it makes buyers more confident about the company’s products and their quality,” said an industry source.
Fiat also recently launched a promotion in which it provides a four-year interest-free loan for the purchase of a family vehicle. The owners needed to be married couples with at least one child.
Then there is Citroen. The French brand has launched an initiative called e-promotion in which it gives extra discounts to vehicles bought online. Renault is offering free insurance for top models including the Clio III and Modus and has slashed up to EUR4,000 from some price tags, according to sources.
Seat has also added to the frenzy by offering customers the chance to participate in upcoming TV spots and has set aside free cars for raffles.
Ivan Castano Freeman
