AUTONEWS

Dealerships make record sale in France to sell stranded cars because of pandemic

In an attempt to relaunch auto industry activities after almost two months of closed commerce and confinement of the population, French car dealerships launched a series of liquidation operations. Some new cars are being sold at discounts of more than 25%.
In addition to being a health catastrophe that results in the death of thousands of people around the world, the Covid-19 pandemic also represents an unprecedented impact in several areas of the economy. And the auto industry was not spared.
According to a balance sheet released this week, car sales have plummeted 88% in the past two months in France. The country's concessionaires currently accumulate the equivalent of four months of national vehicle production in their parking lots. To eliminate this stock, many launched into liquidations in record time. Advertising campaigns circulate on the internet and in specialized magazines.
Ford, which has more than 11,000 new cars waiting to be sold, gives discounts of almost 25% for some new models. Competitors followed at the same pace, both in popular vehicles and in luxury models.
Peugeot is selling off even cars that have just been launched, such as the 208 II, which started to be marketed in October 2019. The vehicle, which normally costs just over € 20,000, can be purchased with a 12% discount until the later this month.
Citroën, with its 15 thousand “stranded” cars, has been proposing reductions of between 10% and 15% in its new vehicles since April, in addition to a series of advantages, such as a year of additional free warranty, the first monthly payment paid just three months after the purchase and home delivery.
Nissan, one of the most generous at the time, offers discounts of 27% for some zero-kilometer models, while Seat proposes to customers to buy a car today and start paying only in 2021.
Fall in production
While dealerships are doing what they can to eliminate their inventories, automakers are trying to slow production down to prevent build-up in their yards that are already full, not just in France.
The Volkswagen group said on Wednesday (14) that it will interrupt for several days several assembly lines that have just reopened after the end of the confinement in Germany. At its factory in Wolfsburg, the automaker's historic headquarters, two lines will be completely decommissioned and one will operate at reduced hours. The group's production in Europe is currently estimated between 35% and 50% of its normal capacity.
In Germany, which has one of its economic pillars in the auto sector, the crisis could cost about 100,000 jobs in the long run.

Source: rfi.fr