Photo: Peugeot
While Ferrari can get over 10 percent profit on a 458, Renault will struggle to reach neutral with a cheap car it builds in China. That’s how the fundamentals of the luxury market work, but newly elected French legislators want a bit of solidarity from the rich people, as they are considering introducing a tax on large luxury cars.
The tax is being pushed forward by the new economy minister in France, Pierre Moscovici, but was written up before last month’s elections. The elected officials of town that have car factories hope this will halt the decline in French car production and demand.
Although it’s a clear stab at luxury cars from Germany, the move will protect subcompact models built by PSA and Renault, encouraging their sale.
Renault sales have dropped 21 percent from January to April, while Peugeot only dropped 14 percent.
Story via AutoNews Europe
Although it’s a clear stab at luxury cars from Germany, the move will protect subcompact models built by PSA and Renault, encouraging their sale.
Renault sales have dropped 21 percent from January to April, while Peugeot only dropped 14 percent.
Story via AutoNews Europe
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