Car business failures
September 22nd, 2009 by Richard Aucock
CAR industry businesses failures were down nearly 20 percent last month compared with 2008, reveals Experian.
The current failure rate is now the lowest since January 2008.
It finally brings the car industry in line with the average insolvency rate for the rest of the UK. For over a year and a half, automotive firms have been failing much more often than average.
Experian’s Mark Nuttall welcomed the findings. ‘This latest data suggests that automotive businesses are proving to be far more resilient than businesses in some other sectors.’
Scrappage has certainly played its part, he said, but ‘these figures show that the financial distress levels among automotive businesses had started improving much earlier in the year.’
In revealing the stats, Nuttall also gave advice to car dealers – because these figures are now available through Experian, ‘many UK businesses are monitoring the health of suppliers, customers and partners, as well as themselves, in order to ensure they do not suffer from the impact of another business becoming insolvent.’
In short, if your business is in trouble, you won’t have anywhere to hide…
Tags: experian, insolvency
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