Despite the scrappage scheme, significantly more companies filed for insolvency in 2009 than in the previous year. The Federal Statistical Office recorded a 15.6 percent increase in insolvencies across all sectors of the automotive industry to 1,272 cases (including commercial vehicle and motorcycle businesses as well as paint shops and car washes).



The vehicle trade was particularly affected: 687 companies had to announce their insolvency, an increase of 20.3 percent compared to 2008. The "trade in motor vehicles up to 3.5 tons" was particularly affected. In this industry segment, the number of insolvencies rose by 21.4 percent to 652 cases, while in the commercial vehicle trade, bankruptcies rose by only one case to 35 affected companies (+ 2.9 percent) despite the sharp decline in sales.



The highest percentage increase in insolvencies in 2009 was in the motor vehicle parts and accessories trade. Here, 151 companies got into difficulties, 40 more than in 2008 (+ 36 percent).



Service and motorcycle businesses more stable

Repair and service businesses were much more stable last year: the Federal Statistical Office recorded 309 insolvency proceedings for workshops in 2009, an increase of 14 cases or 4.7 percent compared to 2009. Interestingly, insolvencies in the commercial vehicle sector actually fell by a third to 14 cases, while in the passenger car and van sector up to 3.5 tons, 295 insolvent businesses were recorded, an increase of 7.7 percent (2008: 274 businesses).



In the bike sector, company bankruptcies remained at the previous year's level despite the renewed slump in sales. Over the year as a whole, 50 companies ran out of money, which was one more case than in 2008.


ZDKexpects the number of cases to fall

The ZDK is relatively optimistic for the current year: the number of insolvencies in 2010 could be slightly lower than last year, ZDK Vice President Wilhelm Hülsdonk said at the association's annual press conference last week.



"We have lost around one percent of businesses in recent years, in bad years it was up to two percent," said Hülsdonk. However, more than half of the businesses are being continued in a different form, and in many cases insolvency is the basis for a sensible new start.



According to the ZDK, at the end of 2009 the industry had a total of 38,300 master car dealerships nationwide, of which 18,250 were franchised car dealerships and 20,050 were independent garages.



"kfz-betrieb" is the most widely read trade magazine in the automotive industry and has been informing the automotive trade and service sector for 99 years. "kfz-betrieb" is the official organ of the German Motor Trade (ZDK), the professional interest group for around 39,000 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.