Posted Sep 30th 2012 2:00PM
Think car sales in Europe are in the toilet? Well, turns out they're even worse than anyone thought.
A Ford executive tells Bloomberg that dealers for brands across the EU are buying their own cars, boosting new-car sales figures by as much as 30 per cent. The dealers then sell the brand-new cars as used vehicles for steep 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," Roelant de Waard, Vice President of Marketing, Sales and Service at Ford of Europe, told Bloomberg at the Paris Motor Show last week.
Ford has been having a rough time in Europe, posting the biggest sales declines in the industry for August, according to Automotive News. The company, which has successfully turned around its operations in North America, is facing $1 billion USD in losses in Europe this year.