Monday, September 7, 2015

Fiat, Alfa Romeo, Opel, Volvo, kings of unprofitable sales

Fiat, Alfa Romeo, Opel, Volvo, kings of unprofitable sales

Car Market. The europe car market takes off now. But the official sales figures conceal realities far less flattering. Sales to rental companies to almost zero margin demonstration models passed as false used cars are in fact largely distort the market ... Some manufacturers do not hesitate thus artificially inflating their sales figures to achieve their business goals. Fiat and drains 36% of the small 500 in France through short-term rental companies and that percentage even rises to over 50% for minispace Fiat 500L, according to inter-builders statistics obtained by Challenges (first seven months of 2015 by France ). Huge percentages. Opel (GM), 45% of family Insignia are absorbed by those renters and 36% of the Opel Astra compact. This is also the case for 29% of Ford Galaxy MPV.

The "premium" is not outdone
And "premium" models are not indented. BMW sold between January and July 23% of its Series 3 (before facelift) through this channel, 40% of its Mercedes E-Class and Volvo half its V70 wagons. Sales to short-term renters are at very low wage rates and tightened to the manufacturer, who will also get to see a few months all these recent models on the used market. Overall, Fiat sold 28% of its new cars in the short-term renters in the first half in France. Jeep (a brand of the Fiat Chrysler Automobiles group) is 27% and Lancia, another label's Italian-American group reaches 45%, ie nearly a sale on both! A record of all makes. Opel achieves on average for 29.4% share of its total sales in France with short-term rental companies, Ford 22.4%. It's a lot. Against 12.1% for the average of all makes (seven months).

False used vehicles
Another channel to evacuate the overflow readily salable cars: demonstration vehicles. These sales are even more toxic. Because it is new cars registered early without identified customer behind, which will then be passed as false Used vehicle "zero kilometer". Nearly a quarter of Alfa Romeo Mito and Giulietta are thus passed through this. But 32% of the "SUV» Hyundai Santa Fe Korean, 35% of Japanese Honda Civic, about as big "Crossovers" Volkswagen Touareg, 38% of large 4x4 Jeep Grand Cherokee. Models sold to garages (demonstration) loom large in some 37% of total sales in France over the first six months of the year for English Jaguar (JLR), which registers and more also many vehicles as such " to manufacturer. " These are self-registrations, period! With these two parallel channels, Jaguar exceeds 45%! An extremely high percentage. The Japanese Mazda reaches 27%, fellow Mitsubishi 26%. The average for all brands is only 12.6% (seven months).

Profitable sales to individuals
Ultimately, the most profitable sales channel remains indisputably that of new car sales to private customers, identified. Simply. This is the most virtuous. But it weighs just 50% of the French market. In this context, the most "healthy" manufacturer in France proves to be the Dacia Romanian subsidiary of Renault low-cost! With 84% of vehicles sold to individuals in France, the firm Pitesti beats a record of all makes. The attractiveness of his models, simple and accessible, allowing it to bring in enough customers concessions without using commercial devices.

Volkswagen (55%), Seat (Volkswagen, 62% group), Toyota (63%) but also the Korean Hyundai and Kia (58% on average for both brands) are also doing very well on average. Citro├źn (49% of transactions with individual customers) and Peugeot (46%) are also honest levels. Renault also. At these sales to individuals, will add an important asset: these manufacturers also realize a lot of sales to companies. This channel is certainly less profitable than sales to individuals, but much more profitable than transactions with short-term renters or false Used models!

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