Würzburg, December 5, 2008
"I'll buy a car when the effects of the financial crisis are over and my job is secure", is what many consumers will be thinking. The buyers' strike is being felt above all by the car manufacturers' authorized dealers: a good two thirds of them recorded lower new car sales in November than in the same period last year. In addition, 57 percent of franchised dealers registered a drop in sales in the used car business. This was the result of a survey conducted by the Bank Deutsches Kraftfahrzeuggewerbe (BDK) and the "kfz-betrieb" editorial team. The survey was conducted by the Cologne-based institute BBE Retail Experts.
The mood among contractors has been gloomy since May of this year. The result: the index value for brand-name companies fell from 126 to 66 points. This is the worst value since December 2002. In contrast, the value for independent service companies rose by 14 points in November, as 40 percent of brand-independent companies rated their economic situation as "good".
The automotive industry can hope for support from the German government and the EU Commission. The German automotive industry welcomes the temporary suspension of the vehicle tax when buying a new car. However, the rapid introduction of a C02-based vehicle tax is also necessary, demands VDA President Matthias Wissmann.
The prolonged haggling over the tax reform is not only unsettling car buyers. It is also affecting dealers' sales forecasts. A good 70 percent of those surveyed expect sales of new cars to fall in December. Fifty-seven percent of dealers believe that sales in the used car business will also be lower this month than in the same month last year.
The factory-based entrepreneurs assess their future turnover development in service and spare parts sales better than the vehicle trade: Only 18 percent of them expect revenues in the workshop business to fall in the coming month.
Good prospects for the future overall
Dr. Hermann Frohnhaus, Spokesman of the BDK Board of Directors, is positive about the future: "The mood among brand dealers reflects the current economic situation. The industry index has reached a new low. The difficult situation in the industry is being exacerbated by the financial crisis and the onset of recession. Sales figures are continuing to fall and dealers' concerns are growing. Owners of independent service companies are more optimistic. They are currently benefiting from the fact that the holding period for vehicles is increasing, meaning that service and maintenance services are being used more frequently. Despite the strong economic and cyclical influences, the automotive industry has good prospects for the future overall, as mobility continues to be of great importance for Germany as a business location. In addition, numerous manufacturers are already working on innovative concepts for a successful future for the automotive industry."
You can find the BIX archive at www.kfz-betrieb.de/branchenindex
"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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