Q2 motor insolvencies at peak since 2001
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.
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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.
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: “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.
“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.”
