Ford Fiesta Zetec S

As the recession still wrecks havoc in the US and Europe and pretty much all parts of the world, increasingly price and cost conscious consumers continue to downsize one segment down with their new car purchases.

The Volkswagen Golf has just lost its number one selling car title in Europe to the Ford Fiesta, which is one size smaller and a competitor to the Volkswagen Polo. Ford sold 52,805 Ford Fiestas in Europe in March 2009, compared to 46,415 Volkswagen Golfs. However the Golf still tops the Fiesta in total Q1 2009 sales figures – 119,651 units versus 113,576 units.

Sales of the Fiesta were especially boosted by the new scrapping plans offered by European governments, which offer up to 5,000 Euros to scrap an old car for a new model, which usually ends up being a small car. 5,000 Euros is seriously alot of money for a small car in Germany, where a Polo starts from under 13,000 Euros. So it is really quite a real incentive there.

It makes our measly RM5,000 scrapping incentive look like pittance, which is what it is really, I don’t know why they keep comparing our scrapping scheme to other countries. The scrap incentive got translated dollar to dollar when the car prices are not.