European dealers sell cars to themselves to boost their sales

Article by Christian Andrei, on October 8, 2012

As the European auto market continues to struggle, Ford Motor Co. and other automakers have turned to “self-registrations” to boost their sales. Under this practice, dealers sell cars to themselves without customer orders. Roelant de Waard, vice president of marketing, sales and service at Ford of Europe, said that this move is very common in Europe.

In fact, self-registrations make up 30% of industry registrations in Germany in the first eight months of the year. Dealers would later sell these cars as used vehicles that are heavily discounted. When interviewed at the Paris Motor Show, de Waard said that this practice will probably persist unless demand goes or the capacity is adjusted.

The European Automobile Manufacturers’ Association revealed that Ford had the worst drop in European car sales in six months in August while industrywide registrations fell 8.5% to 722,483 vehicles compared to the previous year. ACEA announced on Sept. 18 that Ford’s sales in Europe declined by 29% to 43,401. Its market share decreased to 6% from 7.7% the previous year.

Chief Executive Officer Alan Mulally has been instrumental in the company’s revival but his efforts are being hampered by the economic situation in Europe. European pretax operating losses increased to $404 million in the second quarter after having recorded $149 million in the first quarter and reporting a profit of $176 million the prior year. On July 25, Ford revealed that it believes that full-year European losses will go over $1 billion, which is double its prediction made earlier.

Topics: europe, sales

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016