Scandalous Volkswagen Slashes Prices to Boost Sales | Be Korea-savvy

Scandalous Volkswagen Slashes Prices to Boost Sales


After going under a seize and search for faking emissions results for some of its diesel models, Volkswagen once again pulled out their extreme discount plan in the Korean market. (Image : Yonhap)

After going under a seize and search for faking emissions results for some of its diesel models, Volkswagen once again pulled out their extreme discount plan in the Korean market. (Image : Yonhap)

SEOUL, March 8 (Korea Bizwire)After going under a seize and search for faking emissions results for some of its diesel models, Volkswagen once again pulled out their extreme discount plan in the Korean market.

Industry watchers see Volkswagen’s move to be a desperate countermeasure against their dropping sales due to their tarnished brand image after continuous scandals.

According to the industry, Volkswagen’s Financial Service will conduct a special free-interest promotion in March. Consumers who purchase the Golf, Jetta, or Tiguan could make monthly payments without interest.

To those who purchase the Golf, special extended warranty programs will be provided. Consumers who sign to buy a Golf until March 18, will get a free warrant of 3 years to 4 years at the longest. Also, free repairments are provided until the vehicle runs 100,000 kilometers.

Consumers who purchase a vehicle through the special financial promotion can change their vehicle into a new one when the car is damaged due to a car accident within a year after purchase, and the repairing costs of the vehicle exceed 30 percent of the original price.

Whether the various benefits would boost sales is yet to be known. However, previous data shows that the Volkswagen’s promotion which occurred last year resulted in dramatic sales.

According to industry analysts, Volkswagen sold around 3,000 units in the Korean market during the month of November 2015. Since Volkswagen only sold 947 cars in October, after news of the emission scandal broke, sales more than tripled in the span of only one month. Considering that Volkswagen usually sells an average of 3,000 units every month in the domestic market, November sales not only recovered to their usual level, but also set a sales record for the year.

This is in contrast with the American market, where sales of Volkswagens dipped 24.7 percent in November compared to the same period last year.

By M.H.Lee (mhlee@koreabizwire.com)

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