Dealers Apply Self-Registration Strategy to Survive in Europe image

Ford declared that automakers’ dealers in Europe boost sales by selling cars to themselves without consumer orders.

It seems that this practice has become quite widespread among European dealers, accounting for 30% of the auto registrations in Germany during the first eight months of this year. After they sell the vehicles to themselves, the cars are sold as used vehicles at big discounts.

“It is a very aggressive environment and until either demand picks up or capacity is adjusted to the situation, it’s unlikely going to change,” said Roelant de Waard, vice president of marketing, sales and service at Ford of Europe. “You have to live with the realities of the industry.”

In the first eight months of the year Ford led the biggest decline in Europe will sales down 29% to 43,401 units and its market share down 6% from 7.7% in 2011. Ford announced on July 25th that it expects a loss of $1 billion in the European market by the end of this year, double its earlier forecast and only beginning with 2014 will the company see some recovery. Ford says that it will try to protect its profit margins by retaining as much as possible from self- registrations.