Business failures HALVED
December 4th, 2009 by Richard Aucock
CAR dealer insolvencies have dropped by 53 percent over the last year reveals data from Experian.
The latest performance is in line with July 2008 levels, suggesting that the heavily-hit car industry is starting to emerge from the recession.
Late payments are also now running at the lowest level since July 2008.
Mark Nuttall, general manager of Experian’s Automotive business, said it ‘hints at renewed confidence. For the second month in a row, the automotive industry has been among the top four industries to pay their overdue bills within the least number of days beyond terms.
‘Automotive businesses appear to have fared quite well in October,’ he added.
The financial strength of the industry has seen a small improvement, suggesting that we could see this stability continue into the next month.’
This doesn’t mean that car dealers can become blasé, though. Not all industries are recovering at the same rate – it’s thus vital car dealers still use business information tools to monitor customers and suppliers.
However, not all industries are faring as well as the automotive sector so it is vital that dealers continue to use business information to monitor the health of their customers and suppliers.’
Is this renewed confidence being reflected on the ground at your car dealership?