FRANKFURT, Jan 21 — Swiss consumers are getting some relief from the surge in the value of the franc with Mercedes-Benz and Peugeot cutting prices on their cars.
Daimler AG is offering a “currency rebate” of 18 per cent off the list price of its Mercedes and Smart autos, the Stuttgart, Germany-based manufacturer said in a statement today.
After the central bank’s surprise abandonment of a minimum exchange rate caused the franc to surge versus the euro, PSA Peugeot Citroen created a programme to offer as much as 1,000 Swiss francs (RM4,142) off Peugeot cars and 1,500 francs off the brand’s commercial vehicles. The Swiss Bonus offer runs through the end of January and further actions may be taken, spokesman Mickael Berend said.
The Swiss National Bank sent shockwaves through equity and foreign-exchange markets after deciding on Jan. 15 to drop a policy to prevent the national currency from strengthening beyond 1.20 francs to the euro. The franc, which traded at about 1.01 per euro today, has gained against most currencies since the SNB’s move, lowering the cost of items imported into Switzerland while making exports from the country more expensive. — Bloomberg
