Fleet News

European price differences still a mystery

TAX harmonisation and exchange rate stability would not achieve common new car prices across Europe, according to a new report, writes sister magazine Fleet News Europe.

The European Commission's competition directorate commissioned a report, 'Car Price Differentials in the European Union: An Economic Analysis', which says exchange rates and taxes do not explain all of the price differentials and their evolution. It says half of the price differential remains unexplained by exchange rates, taxes, margins or right-hand drive supplements.

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