BARCELONA - A price war is raging in Spain. 'Discounts averaging up to 15 percent are being offered to retail buyers by all the volume makers,' said Marc Serruya, Honda Automotive Espana SA sales manager. 'Some daily rental flett operators are now on buyback deals with 35 percent discounts. It's chaos.'
The war erupted after a government scrapping incentive started in late April. Rover's wholly owned distributor Rover Espana has already cut prices by 12 percent by paying the registration tax on behalf of customers. It has also offered free air conditioning across the range.
'It's not enough,' said Rover Espana spokesman Sergio Dominguez. 'Toyota has changed tactics again by dropping all promotions and switching to huge price cuts. All manner of promotions have been introduced. It is obvious that manufacturers and dealer networks are losing money.'