Information services company Experian reported the worst Q2 for
automotive company bankruptcies since 2001, with a 30.9 per cent
increase on Q2 figures from 2007.
Despite a positive Q1, 72 businesses failed during April, May
and June, bringing the year’s total to 134, 10.7 per cent more than
2007’s first half total.
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The motor industry ranked tenth in Q2 insolvency levels out of
34 industries analysed, where overarching figures showed a 19.7 per
cent rise in business insolvencies during the quarter.
Managing director of Experian’s Automotive division, Kirk
Fletcher, said: “When the year began positively – with quarter one
seeing a 6 per cent drop in insolvencies and both new and used
car sales remaining fairly stable – there was hope the industry
might manage to ride out the credit crunch for a few more
months.
“These latest figures reveal a worrying nose dive.”
He added: “Dealers may find they are under more scrutiny
than before. Even those managing to keep their heads above
water need to keep an eye on their financial and commercial
profile.
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By GlobalData“Whilst generating sales is important, maintaining good business
credit score and a low risk profile will be the factors that help
dealers retain their business relationships and lines of
credit.”
Motor Finance Issue: 45 – July 08
Published for the web: August 4 08 12:10
Last Updated: August 4 08 12:13
