Hyundai France: ‘scrap incentive not effective and too expensive’
With the coronavirus health crisis and the economic crisis to follow, experts are calling the French government to strengthen the scrap incentive for polluting cars. However, Hyundai Motor France CEO, Lionel French-Keogh, has rather some reticence to the idea because the state finances will already have been solicited by the health crisis. Plus, scrap incentives induce the purchase of small cars with low margins.
“Our advantage at Hyundai is that we have a strong commercial schedule coming up with the launch of the i20, Tucson, new Kona, and new Santa Fe. In spite of our plants closing, we are keeping it on, which will allow us to put back our brand on a strong commercial dynamic for the second half-year. Plus we continue to work on our CO2 reduction,” explains the CEO of Hyundai Motor France, Lionel French-Keogh.
According to the head of Hyundai France, the restart will lean on the stock. The first clients that will knock at the doors of the dealerships after the lockdown will do this by necessity. Therefore, keeping up stocks of cars is highly important for a swift restart.
“We’re also working on very targeted marketing campaigns, in order to generate the best return on investment. This marketing strategy will be all the more necessary given the new agenda that awaits us at the start of the school year,” notes French-Keogh.
Last week, marketing consultancy cabinet C-Ways explained that in 1993 and 2008, the market got back on its feet because the French government started a scrap incentive. For Hyundai Motor France, this won’t have the desired effect this year.
“I’m not sure that this is the path the government will take simply because such an incentive will cost the taxpayer a lot of money. Furthermore, I’m not in favor of any scrap incentive because, as we know it, it pushes consumers toward small cars, encouraging the purchase of cars with very low margins, little VAT income, and that are not always the most environmentally friendly ones,” ends the CEO.