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Ford’s European dealers sold cars.. among themselves

By SYF77 on 05 Oct 2012

Ford of Europe has an interesting method to boost sales. The dealers sold cars to each other, without having actual customer orders. Dealers eventually sell the cars as used vehicles at huge discounts. This has artificially boosted car sales by up to 30%.

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Even more interestingly, Ford’s Europe Vice President of marketing, Roelant de Waard, is aware of the practice and seemed to endorse it.

“It is a very aggressive environment and until either demand picks up or capacity is adjusted to the situation, it’s unlikely going to change,” de Waard said during an interview with Bloomberg at the Paris Motor Show. “You have to live with the realities of the industry.”

Ford’s sales in Europe dropped 29% in August 2012 as compared to the same month a year ago. At the same time, their market share fell by 1.7%. Ford of Europe’s pretax operating loss worsens to $404 million in Q2 2012, deterioration from Q1’s loss of $149 million. Ford said that it expects the full-year European losses to exceed $1 billion, double its earlier forecast. According to de Waard, he sees possible recovery only in 2014.

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With such pessimistic outlook, perhaps it is hard to blame Ford for such practice. De Waard claimed that the practice is carried out industry-wide in Germany. Selling cars at huge discount is better than no sales at all.

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Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.

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