Further VW price cuts
31/8/2004 10:04
Wendy Zhang/ Shanghai Daily news
The Shanghai
Volkswagen Automotive Corp will cut its car prices by an average of 5,000 to
7,000 yuan (US$602-US$843), the largest promotion since June, eastday.com
reported today.
The price reductions will cover three models: Santana 3000
Santana and Passat (2.0T and 1.8T), with about 10,000 yuan off price cuts
expected on some particular models, said a marketing spokesman with the Beijing
Zhongyida Huicheng Automobile Sales Ltd.
"There are no plans to cut the
prices of Polo and Gol models, as their prices have already reached the bottom,"
the spokesman indicated, adding that the four-door Gol is priced at only 69,800
yuan, with demand exceeding supply.
However, VW Shanghai clarified that the
price cuts are to be initiated by the dealers themselves, and have nothing to do
with the manufacturer. The dealers' comments echo VW Shanghai.
" VW Shanghai
is rewarding its dealers who have performed well by offering them higher profit
returns,"the spokesman with Zhongyida Huicheng pointed out, adding that they are
then willing to offer part of the benefits to the consumers.
Actually, car
makers are still playing a leading role in the price reductions, as it is hard
for dealers to take a unified move, said an industry analyst. Continuous price
cuts have negative impacts on the car manufacturer's reputation, which is why VW
Shanghai instigated the price cut inadvertently, the analyst
added.
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