Germany Saves Dacia-Renault Sales, Sarkozy Should Take Notes

Germany's used cars incentive, a measure through which the German Government offers a $2,500 euro deduction to anyone who buys a new car and scraps the old one, is proving to be a very successful initiative. What nobody expected was that it would not be a German car manufacturer to benefit from the incentive, but a foreign one.

French builder Renault is the lucky and unwanted winner of the incentive. Its low-price Logan and Sandero models, produced by their Romanian Dacia brand, is selling at levels previously never believed possible in a premium car oriented market.

Dacia sales in Germany increased more than 12.5 times since the introduction of the program, as figures indicate the company is selling 1,000 Dacia units per week, compared to 80 units per week before the incentive, Financial Times Deutschland reports.

The reason behind this odd customer behavior is simple. While the cheapest new BMW you can find costs around 23,000 euros, a Logan or Sandero model are in the 10,000 euro ballpark. Of course, performance isn't the same, but as we all look more into our pockets rather than under the hood, the 2,500 euro discount makes Dacia more attractive over a local brand.

This unexpected development should be a slap on the French president's Nicholas Sarkozy cheek. After approving in the first decade of February a bailout plan for the French automotive industry, the French official suggested Renault and PSA should stop outsourcing resources and restrain from bringing into the country cars the two build elsewhere. In doing so, he managed to upset several EU member states, like the Czech Republic and the United Kingdom.

We don't see the German Government kicking Renault out of their country, just because the French manufacturer is profiting more from the incentive. But we are not sure the French authorities would have done the same, should the situation be reversed. Let this be a lesson for you, president Sarkozy!
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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