Iveco refutes guide claims
Page 10
If you've noticed an error in this article please click here to report it so we can fix it.
by Ian Wylie • Iveco Ford has angrily denied accusations from Glass' Guide that its discounts on new trucks are "undermining the used truck market".
In the September editorial of Glass' Guide, Iveco Ford is cited as being "the worst of several discount offenders who ignore the traditional view that sound used values support demand and profitability for new vehicles".
According to the guide, discounting means that future secondhand values are being undermined from day one for the sake of market share. It also claims dealers could find themselves guaranteeing values above true used (residual) values in buy back contracts.
Iveco Ford marketing director Chris Christianson says the accusations levelled at the manufacturer are untrue. "We have high list prices, which proves we value residuals," he says. "The reality is that the customer and the marketplace, and not the manufacturer, determines the price of the vehicle."
But one Iveco Ford dealer told Clit "Anyone who discounts a product knows they are undermining its future value, but Iveco Ford is having to compete aggressively to market its new products against established ranges. In today's motor trade you have to take what business is available now and worry about the consequences later."