The euro will not cut prices

Officials revealed European car companies in the United Arab Emirates that the low exchange rates of the euro in the last period will not have a direct impact on the decline in car prices.

They added that a number of agencies, the European car slashed prices earlier in the promotions conducted to stimulate sales in the face of the recession that accompanied the global financial crisis, which reduces the chances of achieving any reductions new affected down the euro, noting that "the decline of the euro at the moment is an opportunity to compensate for the losses suffered by the auto industry crisis. " According to the newspaper "Emirates Today" Tuesday.

The exchange rates of European currency has made a big drop in global currency markets, described as the largest in nearly four years, by around 14% against the dirham and the dollar, compared to previous price levels.

Pricing the dollar

The Director of Marketing, "Daimler Mercedes-Benz" in the Middle and Near East, Ashraf Tamim, said that "it is unlikely that there is a decrease in the prices of Mercedes cars due to weaker euro, because the company is dealing in dollar in the pricing of its cars in the domestic market, to ensure price stability resulting from the link dirham U.S. currency. "

The Tamim to "link the sale price of cars with agents in the UAE, the dollar was guaranteed during the previous periods, that no changes price surge in car prices during periods of rising or falling exchange rate of the euro, and therefore it is natural not to lower prices for cars with the recent declines for the European currency for of these agents. "

"The euro's exchange rate declines that may affect the long-term prices of some types of European car related."

Profit margin

On his part, director of the automotive sector in the power of attorney car "Peugeot", Jeremy Iverel, "It is not expected to be affected car prices falls, the last of the euro due to several factors, most notably that most car manufacturers have been affected by the economic crisis, and will lower the exchange rate of the euro in their interest to increase the margin of profits. "

He pointed out that "all the new models come on the market at higher prices than its predecessors, and therefore will not notice a decline in prices but an increase in competition in the market."

He told Iverel that "in the event of changes in prices, due to decline of the euro, is expected to be short-term, particularly in light of current economic conditions, where pricing decisions according to changes in market and economic conditions of the day, as happened during the last period when circumstances arise forced the agents to get rid of stock cars at discounted prices to a degree not expect one. "

He pointed out that "However, some agents still sell the older models did not put new ones waiting for the right time, as a result, the car manufacturers who have lost part of their share in the market will take advantage of weakness of the euro to increase profitability."

He added that "in case of any reductions forming long-term types of European cars will be some changes in the market, considering that the low prices will allow for European cars compete more fully in local markets, increasing market share at the expense of Japanese cars and American specifically."

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