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Car Prices in the European Union on 1 May 1997 - Price Differences Reach Record Level Due to Revaluation of Pound Sterling

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Car Prices in the European Union on 1 May 1997 - Price Differences Reach Record Level Due to Revaluation of Pound Sterling IP/97/640 Brussels, 11th July 1997 Car prices in the European Union on 1 May 1997 - price differences reach record level due to revaluation of Pound Sterling On 1 May 1997, 24 of the 75 best-selling models in Europe were cheapest in the Netherlands, followed by Portugal with 18 models. Due to the strong revaluation of the British Pound, the United Kingdom now has the highest car prices - after conversion into ECU - for 54 of the 75 models examined, compared to 15 models as stated in the previous report1. Consequently, in Germany and France prices are highest for only 11 (previous report: 30) models. These are the principal features of the ninth Report on car prices in the European Union. The report is compiled every six months by the European Commission on the basis of information made available by the European and Japanese car manufacturers. It has to be noted that the widening price gap has been due to currency movements, rather than to changes in recommended retail prices in the Member states concerned. The regular price reports of the Commission underline the necessity of introducing the single currency as soon as possible, as provided for in the Maastricht Treaty. This is the only way to avoid the monetary fluctuations which lead to price differences incompatible with the idea of a common market. It should also ensure that prices are determined solely by economic factors. On 1.5. 1997, price differences across the Community exceeded 20% for 43 of the 75 models examined. This applied in particular to the models of the Fiat group, Ford, Citroën, Renault, Volkswagen, Mitsubish and Subaru. Manufacturers such as the BMW-group, Mercedes-Benz, and Audi, as well as most of the Japanese producers, apparently apply a pricing policy across the Community aimed at keeping their prices within a certain margin. This can also be said for Opel, Peugeot and Seat. Thus, the revaluation of the British Pound affects the overall trend observed since November 1995, i.e. that car manufacturers increasingly try to limit price differentials to 20%. Some highlights Price differences (in ECU) at 1 May 1997 for some of the best-selling cars in the Community (for comparison, price differences as per 1 November 1996 are given in brackets) were as follows: 1 Car prices within the European Union on 1 November 1996 (Doc. IV/F2/1196). Small segment: Fiat Punto 27.3% (26.3%) Ford Fiesta 33.9% (26.8%) Renault Clio 24.0% (14.8%) Medium segment: VW Golf 30.9% (21.1%) Opel Astra/Kadett 21.5% (32.8%) Ford Escort/Orion 33.3% (21.9%) Large segment: BMW 316 24.7% (15.7%) Audi A 4 16.9% (14.6%) Ford Mondeo 27.7% (24.6%) The difference between the lowest and the highest price for these models has increased in comparison with the previous survey. This fact is - as in the previous report - mainly attributable to the conversion of the prices in British Pound into ECU, the reference currency for the survey. This has lead to very high price differentials of more than 30%, in some cases even exceeding 50%, for 23 of the 75 models. Exchange rate developments In the period under investigation (1.11.1996 through 1.5.1997), currency fluctuations were relatively extensive. In particular the British and Irish Pound continued to rise, by 9.3% and 2.5%, respectively, against the ECU. All other currencies depreciated against the ECU; by up to 2%, with the exception of the Swedish Kronor which lost 6.3% of its value. Pricing policies of manufacturers An examination of the pricing policies of manufacturers indicates that list prices in the individual Member states are determined by economic considerations, but also take into account taxes to be paid with the car purchase. Price policy may also be influenced by exchange rate developments, although a direct relationship is hard to prove. The strong revaluation of the British Pound against the ECU, which between 2.5.1996 and 2.5.1997 amounted to 15.3%, has had no significant impact on the pricing policies of manufacturers. Only Ford, Renault, Peugeot and Seat have, in the period from 1.11.1996 and 2.5.1997, reduced their prices in the UK in general. The majority of the other manufacturers have increased or maintained their prices, thus benefitting from the so-called "windfall profits" resulting from the revaluation of the Pound. 2 Methodology The methodology used is the same as that employed in the past: a total of 15 European and 8 Japanese manufacturers submitted the recommended retail prices, as of 1.5.1997, of 75 of their best-selling models. While three models have been taken out of the sample, three new models, namely the Audi A3 and A8, and the Volvo S70, have been added to the survey. Prices are adjusted for equipment differences and are given in local currency and in ECU2, before and after tax. Prices for major options, right-hand drive and other information are also supplied. For some models, further options and differences in standard equipment may exist in certain national markets. These, however, are not explicitly taken into account in the current report. It should be noted that actual retail prices may differ from recommended list prices, as dealers are free to set their own prices. Due to their particularly high car taxation policies, Denmark, Greece and Finland are not covered by the survey. Information for the public With a view to increasing transparency and providing better information to the public, the Commission is providing easier access to data by making the report available: - on the RAPID database; - at the INFO-C offices (European Consumer Information Centres) in the different Member States; - at Commission Offices in the different Member States. 2 The ECU rate used for conversion is that published in the Official Journal No. C137 of 3.5.96, p 1. 3 Diferenciales de precio de coches en la Unión Europea al 1 de mayo de 1997 (en %)/ Prisforskelle på biler I den Europæiske Union den 1.Maj 1997 (i%)/ Preisunterschiede für Automobile in der Europäischen Union am 1.Mai 1997 (in %)/ Ïé äéáöïñÝò óôéò ôéìÝò ôùí áõôïêéíÞôùí óôçí ÅõñùðáúêÞ Åíùóç ôçí 1 Μαιος 1997 (ôïéò %)/ Car price differentials within the European Union on 1 May 1997 (in %)/ Autojen hintaerot Euroopan Unionin aluella 1. Toukokuu 1997 (%:teina ilmaistuna)/ Différences des prix des voitures au sein de l'Union Européenne au 1 mai 1997 (en%) / Differenze di prezzo degli autoveicoli nell’Unione Europea al 1° maggio 1997 (in%)/ Autoprijsverschillen in de Europese Unie op 1 mei 1997 (in%)/ Diferenças de preço de automóveis na União Europeia ao 1 de Maio de 1997 (em %)/ Skillnader i bilpriser inom Europeiska Unionen den 1 maj 1997 ( i%) 1 Fuentes:Los constructores de automóviles / Kilde:Bilfabrikanter / Angaben stammen von den Automobilherstellern / Sources: Motor vehicle manufacturers / Lähde: Moottori- ajoneuvojen valmistajat / Sources: Les constructeurs automobiles / Fonte d'informazione: I costruttori di automobili / Bron: automobielfabrikanten / Fonte:Os constructores de automóveis / Källor: biltillverkare/ ÐçãÝò:Ïé êáôáóêåõáóôÝò ï÷çìÜôùí 2 100% para el país menos caro / 100% er brugt på det billigste land./ 100% bezeichnet das preisgünstigste Land / 100% / 100% is used for the cheapest country / 100%: ia käytetään kuvaamaan edullisinta maata / 100% pour le pays le moins cher / 100% per il paese meno caro / 100% wordt gebruikt voor het goedkoopste land / 100% para o país menos caro / 100% används för det billigaste landet/ 100% ÷ñçóéìïðïéåßôáé ãéá ôç öôçíüôåñç ÷þñá 3 XXX indica que no hay datos disponibles / XXX indikerer at beløb ikke er til rådighed / XXX Angaben nicht verfügbar / XXX indicates that figures are not available / XXX ilmaisee, ettei tietoja ole saatavilla / XXX données non disponibles / XXX vale dati non disponibili / XXX betyder aan dat er geen cijfers beschikbaar zijn / XXX dados não disponíveis / XXX visar att uppgift saknas/ ××× åíäõêíåßåé ïôé ôá ðïóÜ äåí åßíáé äéáèÝóéìá 4 Los datos utilizados no incluyen impuestos / Alle anførte beløb er uden skat / Angaben ohne Steuern / All figures quoted are free of tax / Kaikki hinnat on ilmoitettu ilman veroja / Les données utilisées sont hors taxes / I dati utilizzati non includono le tasse / Alle genoteerde bedragen zijn exclusief belastingen / Os dados utilizados são livres de impostos / Alla belopp är angivna exklusive skatt/ ¼ëá ôá áíáöåñüìåíá ðïóÜ åßíáé áöïñïëüãçôá ECU rate on:- ECU-Kurs am:- Cours de l'écu au:- Cambio dell'Ecu all':- Ecu valutakoers op:2.05.1997 (*) Code Country Currency ECU BBelgium BFR 40.3834 D Germany DM 1.95700 E Spain PTA 165.086 F France FF 6.59857 IRL Ireland IRL 0.758541 I Italy LIT 1938.87 L Luxembourg LFR 40.3834 NL Netherlands HFL 1.10149 A Austria OS 13.7741 P Portugal ESC 196.369 S Sweden SKR 8.88656 UK United Kingdom UKL 0.703491 (*) Published in the Official Journal of the EC. (C137, 3.05.97, p1). 4 BMW GROUP / BMW BDEFIRLI LNLAPSUK BMW 316i 107,0% 111,4% 106,9% 108,5% 118,7% 103,9% 101,7% 100% 113,6% 109,0% 105,9% 124,7% MIN MAX BMW 520i 109,3% 108,9% 105,7% 111,2% 105,2% 109,4% 108,2% 103,4% 111,4% 115,2% 100% 121,6% MIN MAX BMW 730i 100,9% 101,9% 100,8% 103,8% 102,6% 106,6% 100,2% 100% 104,2% 112,4% XXX 103,4% MIN MAX BMW GROUP / ROVER BDEFIRLI LNLAPSUK LAND ROVER Discovery 114,7% 110,1% 104,6% 119,4% 121,0% 105,4% 114,7% 104,4% 113,5% 100% XXX 139,3% MIN MAX RANGE ROVER V8i 101,4% 109,8% 100% 102,2% 104,4% 104,9% 101,4% 105,9% 109,8% 102,9% 103,5% 121,1% MIN MAX ROVER MGF 106,8% 101,7% 105,1% 104,7% 105,5% 107,2% 106,8% 109,2% 102,7% 100% XXX 123,6% MIN MAX ROVER 214 104,5% 116,1% 105,2% 109,2% 109,8% 109,3% 104,5% 102,3% 100% 111,9% 102,6% 138,3%
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