Germans drive up car prices in Poland
27 May 2004 , WARSAW - Bargain hunters from across the German border are driving up car prices in new European Union member Poland, where new vehicles can be up to 20 percent cheaper.
27 May 2004
WARSAW - Bargain hunters from across the German border are driving up car prices in new European Union member Poland, where new vehicles can be up to 20 percent cheaper.
A spokesperson for a car dealership in the western Polish city of Zielona Gora, claimed that nearly half of their clients were Germans attracted by lower prices.
In an apparent bid to reverse the cross-border shopping trend, German auto giant Volkswagen has announced it will raise car prices on the Polish market to German levels within 6 months, said Warsaw daily Rzeczpospolita.
Other Deutsch marques are expected to follow suit in a bid to protect the German car market, considered Europe's strongest.
Jacked-up auto prices have resulted in a 35 percent slump in sales in May, according to Polish auto market expert Wojciech Drzewicki, whit the prices of some new Opel models on sale in the western city of Poznan having already jumped by 6 percent.
Nonetheless, the inflated price tags remain 11-12 percent less expensive than in Opel's German homeland.
Toyota dealers say that despite a 10 percent price hike since the beginning of 2004, cars in Poland are still some 20 percent cheaper than in Germany or Great Britain.
However, Italian brand Fiat has no plans to boost prices in Poland to German levels, Rzeczpospolita reports.
Subject: German News