GM's Opel tempts car buyers with return guarantee

FRANKFURT Thu Sep 20, 2012 11:22pm IST

The front of an Opel plant is pictured in Bochum August 23, 2012. REUTERS/Ina Fassbender

The front of an Opel plant is pictured in Bochum August 23, 2012.

Credit: Reuters/Ina Fassbender

Related Topics

Stocks

   

FRANKFURT (Reuters) - In a bid to repair its sickly brand image, General Motors' (GM.N) ailing European arm Opel is offering German consumers the chance to hand back the keys to their brand new car with no questions asked and walk away free of charge.

Running under the slogan "thrilled or just return it", the offer is limited to either 30 days or 3,000 kilometres (1,864 miles) and is only valid in its home market of Germany, the maker of the Astra said on Thursday.

"We want to win new fans of the brand with this deal. Whoever drives our cars for the first time will quickly be convinced of the quality and innovation of our cars," Opel interim chief Thomas Sedran said in a statement.

A spokesman said the campaign would last until further notice and added that there were no plans at present to extend the offer outside of Germany.

Opel has suffered in particular from a "loser image" among large swathes of German consumers who have watched the company go through multiple restructurings and even a failed disposal in 2009, and executives have admitted that its brand is heavily tarnished in Germany.

"You can see it from two perspectives: it lowers the hurdle for a purchase by giving the dealer an additional sales argument but it also can appear in the minds of a buyer as if the company is on the verge of desperation," said Stefan Bratzel, head of the CAM auto industry think-tank in Bergisch Gladbach.

Korean rival Hyundai (005380.KS) made a splash in the United States with a similar offer during the recession in 2009, however, soothing new car buyers with the assurance that they could always hand back the keys if they lost their job in a campaign generally believed to have been a coup.

Assuming Opel customers don't damage the car, the company only plans to send a token bill should the car be returned with a high distance reading. For every 1,000 kilometres driven, a symbolic charge of 0.67 percent of the retail price would be levied.

For a 25,000 euro car, that would translate to about 167 euros, for example.

(Reporting By Christiaan Hetzner; Editing by Helen Massy-Beresford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Market at Record

Market at Record

Sensex, Nifty hit record highs; reforms outpace hawkish Fed.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Samsung Results

Samsung Results

Smartphone woes drag Samsung Elec Q3 profit to more than 3-year low.  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage