Volvo to cut car prices in Korea before start of Korea-EU FTA

SEOUL, May 20 (Yonhap) -- Volvo Car Korea, the local importer and distributor of Swedish automaker Volvo, said Friday it will lower prices of all its vehicles and auto parts sold in South Korea from next week,
Volvo is the first company to do so ahead of the scheduled implementation on July 1 of a free trade agreement (FTA) between South Korea and the European Union (EU).
Under the accord, tariffs on European automobiles with an engine displacement of 1,500 cubic centimeters or larger will be cut from the current 8 percent to 5.6 percent this year and then continue to be reduced over the next three years.
Volvo Car Korea said prices of all its vehicles and repair parts will be lowered by up to 3.5 percent, starting from Monday.
"The Korea-EU FTA will be an opportunity for Volvo to take a great leap forward in the domestic market," Volvo Car Korea president Kim Cheol-ho said in a press release. "The company will use it as a chance to offer maximum benefits and satisfaction to its customers here."
bdk@yna.co.kr