Deutsche Post CEO Zumwinkel threatens to launch price war in 2008
Deutsche Post AG chief executive Klaus Zumwinkel told journalists his company is prepared to make drastic price cuts in the German mail market should it lose significant market share to rivals when its virtual monopoly on letter delivery expires in 2008, the Financial Times Deutschland reported.
‘If I lose too much market share, then I have some price cuts in reserve that will certainly throw our competitors into disarray,’ Zumwinkel said in New York.
The chief executive did not provide further details on the possible price cuts.
The newspaper said that Deutsche Post currently controls about 90 pct of the German letter delivery market. This business last year accounted for 30 pct of Deutsche Post’s total revenue and almost half of its profits.
However, rivals such as TNT, Pin and a range of local delivery services are eager to expand their presence in the German market.
The newspaper said that TNT and Pin want to gain a 10 pct share of the German letter delivery market within the next five years.
