Peugeot Romanian importer: We're compelled to sell cars under production prices to reduce stocks

Some Peugeot models are sold under the production prices to reduce significant stocks. This is valid for models which saw their market plummeting by 70%, claims Trust Motors marketing director Radu Cristian, Peugeot importer in Romania. Additionally, the network of dealers selling new cars are designed for a market of 260-280.000 units, but the figure will pretty soon drop to half. Therefore, players are forced to include in their offers second-hand cars as well, but of good quality, not with an unknown past, Cristian claims.

The Trust Motors representative declared that cars were being sold at 50% discount, especially the commercial cars, whose market dropped 70%. He says that it is better to have a controlled loss than to keep cars in stock for an unlimited time, hoping they will still sell. Maintaining a car in stock is costly as well and prices drop after the first three months.

A car producer earns, in normal circumstances, about 15% of the car’s price and the importer and dealer gain 4-5% each. Now they have to share losses. Radu Cristian says that producers need to complete their offer with second-hand cars as well, because it can attract clients willing to pay for a new car.

According to him, when it comes to low cost, Romanians dwell between Dacia Logan and an imported compact, two-three years of usage and superior equipped. This could be a money-bringer sector, but the dealers need to make sure that older cars do not have an uncertain past, that they’re good quality and still in guaranty.

For any company selling new cars, approaching the second-hand Western imports segment does not necessarily mean bigger profits. Transporting a second-hand car worth of 6.000 euros from Paris to Romania will cost 600 euros. If the pollution tax is big, then there is no point in trying to sell it.

There have been three new models launched – 206 Plus, the crossover 3008 and the convertible 30b CC. In the fist part of 2010, Peugeot will also bring 308 RCZ coupé and the monovolume 5008. There isn’t much information related to the electric model iOn, presented at the saloon in Frankfurt.