Fiat-to-Volkswagen Discounts Signaling Diminishing Sales: Cars

Volkswagen AG, Fiat SpA and General Motors Co. are offering cheap financing and cash rebates to woo hesitant European customers as car demand shows signs of deteriorating because of the region’s debt crisis.

Doubts about the stability of the region’s economy has prompted some customers to back off purchases for the time being. A growing number of buyers have canceled orders in the past week, including two London investors who were planning to buy vehicles from Daimler AG’s Mercedes-Benz, said Simon Empson, managing director of discount U.K. car website Broadspeed.com.