The scrapping bonus makes it possible: new car registrations rose by a whopping 26% to 2.06 million units in the first half of the year. This development has had a positive effect on the industry index for factory-based companies: Although it fell in June, at 114 points it is still at a high level. This is the conclusion reached by the Bank Deutsches Kraftfahrzeuggewerbe (BDK) and the "kfz-betrieb" editorial team.
The dealers surveyed are currently satisfied with the new car trade, as shown by the assessment of their economic situation: 47% rate their own business situation as "good", 43% as "satisfactory" and only 10% as "poor". Almost two thirds of brand dealerships recorded higher sales of new cars than in the same month last year. However, the Zentralverband Deutsches Kraftfahrzeuggewerbe (ZDK) suspects that the environmental bonus has improved the mood of dealers, but not the profitability of companies. "The return on investment remains at zero," reports the ZDK.
Service as a source of income
Service remains the pillar of earnings for contractors. Compared to the previous year, around 30 percent generated higher turnover in the workshop business and around half generated the same level of turnover. Two thirds of the owners of authorized service companies expect their revenues to remain constant in the coming month. In contrast, owners of independent garages are less optimistic: Only 17 percent expect service turnover to increase in July, while 56 percent expect it to remain the same.
Private customers are looking for used cars again
"The positive effects of the scrapping bonus are slowly but surely coming to an end," comments Dr. Hermann Frohnhaus, spokesman for the BDK board. In his view, however, one should not be without confidence for the future. The scrapping bonus has initially brought new customers to the trade. These need to be retained and well looked after, explains Frohnhaus. The used car market is also giving rise to optimism again: there are already initial signs that prices for used cars are stabilizing and private customers are looking for used cars again. Frohnhaus appeals: "Dealers must once again focus intensively on this business segment after activities were postponed during the months of booming new car sales."
The study was carried out by BBE Retail Experts. Further details and the BIX archive can be found online at www.kfz-betrieb.de/branchenindex.
"kfz-betrieb" is the most widely read trade magazine in the automotive industry and has been informing the automotive trade and service sector for 98 years. "kfz-betrieb" is the official organ of the German Motor Trade (ZDK), the professional interest group for around 40,000 car dealerships and workshops. Daily news from the entire automotive industry is available at www.kfz-betrieb.de and in the daily newsletter. The parent company Vogel Business Media is one of the leading German providers of specialist information with around 100 trade journals and 60 websites as well as numerous international activities. Its headquarters are in Würzburg.
