BMW’s Phantom Sales in Germany Show Debt-Crisis Contagion |
| Bloomberg - Aug 16, 2012 |
Werner Entenmann, who runs a BMW dealership in Germany’s wealthy southwest, has long made a comfortable living selling luxury sedans to well-heeled Germans at or near list price. This summer, more buyers are bargaining.
“Every day customers are coming to our showroom with offers from other brands or other BMW dealers,” said Entenmann, whose Autohaus Entenmann near Stuttgart sells about 2,200 cars a year. “This is part of our daily routine.” Profits, he said, are down as the discounts eat into margins.
Entenmann’s change in fortunes reflects the spreading effects of Europe’s sovereign debt crisis. Germany, the region’s largest car market, has been a bright spot, growing 0.7 percent in the first half versus a 20 percent decline in Italy and 14 percent in France, according to the ACEA trade group, which predicts that car sales in the European Union will fall this year to the lowest level since 1995.
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- Posted: 2012-08-16 15:48:56
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