Brussels, 19/02/2001 (Agence Europe) - Price differentials for new cars across the European Union are still substantial, the European Commission notes in its report on car prices of 1 November 2000. According to the results of this annual exercise intended to ensure transparency on the car market, the United Kingdom remains the most expensive market within the European Union and Germany in the euro zone. Pre-tax prices are lowest in Finland, Denmark, Spain and the Netherlands. The Commission notes the largest gaps in small cars that in the larger models.
Vehicles sold in the United Kingdom are the most expensive, despite a depreciation of the pound and a 10% cut in price expressed in euro on 23 models: Citroen, Mercedes-Benz, Opel, Volvo and Volkswagen, notably, having cut some of their prices. Many British consumers complained to the Commission about the steep supplement for models adapted for right hand driving and long delays in delivery. The supplement for fright hand driving is in general lower for Japanese cars and the highest for Volkswagen models, it stipulates.
In Germany, the price of 34 models exceeds by 20% that of other markets in the euro zone. Paradoxically, the Commission notes, the prices of the models of the Volkswagen group (VW, Audi, Seat) and Japanese, are higher in Germany than elsewhere.
"The generally low price of pre-tax cars in Finland, Denmark and Greece are largely due to the manufacturers' pricing policy", which, due to the high taxes in these countries, drop their catalogue pre-tax prices to "sell their cars at affordable prices with tax included", the Commission points out.
This report, based on recommended retail on 1 November 2000 for 71 models of the most sold cars, confirms the major outlines of the analysis of differentials and their cause, that the Commission presented in November 2000. A summary of the report is available on the Internet site: http: //europa.eu.int/comm/competition/car_sector.