Mercedes and Audi See Red Over Car Export
The falling dollar has resulted in an alarming trend for car makers. Merecedes Benz USA and Audi of America Inc have expressed concerns over an increasing number of cars reserved for sale in America, being bought by overseas customers, who then export it to their home location. This has resulted in a tremendous cost advantage for the buyer. Buyers have even resorted to using exporters or buying the vehicle in person.
The U.S. divisions of Mercedes and Audi have decided to deal with this growing problem strictly and have warned dealers not to export.
Mercedes has led the way, stating that though it is hard to pin point the exact number of such exports, because of the delay between the actual time of sale and the time of over seas registration, it has decided that dealers that end up exporting more that 2 percent of their cars will be cut off from new car allocations. This, they say, gives car dealers enough lee way.
Audi has however refrained from penalizing dealers at this point and have just reminded them that exporting vehicles is a violation of the dealer franchise agreement and have decided to help protect dealers by issuing a regularly updated list of known exporters.
Though the proportion of such sales is not staggering just yet, both companies have resolved to nip this problem in the bud.
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