Incentives Pose Threat to Car Profits

Summary


The spread of US-style price incentives poses a mounting threat to European carmakers' profits as buyers spoiled for choice seek out juicy deals in overstocked markets.

Third-quarter results from major producers last week exposed a common theme of eroded pricing power, particularly for mass-market producers churning out new models in a desperate bid to win market share.

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Extract


Incentives Pose Threat to Car Profits

Incentives are especially keen in Germany, Europe's biggest car market, but are on the rise in other major markets as well and seem likely to swell by year's end, offi...

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