Würzburg, November 6, 2008
The media are constantly reporting on the economic consequences of the financial crisis. Politicians are predicting an economic slump and car associations are calling on the German government to provide investment policy incentives for vehicle sales.
However, potential car buyers have not only been unsettled since the financial debacle. Market observers have been reporting a decline in demand for new cars since the beginning of this year. In addition, price increases for energy, fuel and food, as well as the prolonged discussion about the motor vehicle tax reform, had already made consumers reluctant to buy months ago. "Car manufacturers are still dreaming of sales figures that are far too high," explains ZDK President Robert Rademacher.
Since May of this year, the sector index for vehicle dealerships has also been on a downward trend, reaching an all-time low of 71 points in October. The main reason for this is the poor sales figures in the vehicle trade. For example, around 70 percent of car manufacturers' contract partners recorded lower revenues from new car sales than in the same period last year. New car dealers in eastern Germany were hit particularly hard, with as many as 83 percent of them complaining of falling sales.
In addition, 40 percent of the eastern German brand businesses also recorded a drop in sales in the service business. Only around four percent of them are forecasting higher workshop turnover for the coming month. A third of the owners of independent garages also believe that service revenues will be lower next month than in the previous year.
Dr. Hermann Frohnhaus,
Spokesman of the Board of Management of Bank Deutsches Kraftfahrzeuggewerbe
"The mood among brand dealers is significantly below the previous year's level. The result is not surprising, as the crisis in the automotive industry is now being exacerbated by the financial crisis. Buyers are showing restraint and prefer to put their money in savings banks in view of current developments. Dealers fear that the economy will slow down and that credit will become more expensive. However, in view of the measures adopted by the European governments, we should be confident that the overall situation will calm down. We are all called upon - dealers, manufacturers and automotive banks - to develop promising concepts that will drive the industry forward and prepare it for the future."
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"kfz-betrieb" is a trade magazine published by Vogel Auto Medien, Würzburg. The most widely read trade magazine in the automotive industry has been informing the automotive trade and service sector for 97 years. "kfz-betrieb" is the official organ of the German automotive trade (ZDK), the professional lobby for over 40,000 car dealerships and workshops. Daily news from the entire automotive industry can be found at www.kfz-betrieb.de and in the daily newsletter.
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