|
|
Traders weathering recession but struggling, say analysts
publication date: Jul 5, 2010
|
author/source: Robin Roberts
The rate of business insolvencies for the
automotive industry almost halved from 0.12 per cent in May 2009 to 0.07
per cent in May 2010, according to the latest Insolvency and Late
Payment indices from Experian.
| As well as seeing a
year-on-year fall, the rate dropped from 0.08 per cent last month to
0.07 per cent, a low not seen since December 2007.
The financial
strength of the automotive industry also saw a slight improvement both
year-on-year and month-on-month, going up to 79.71 from 79.31 in May
2009 and from 79.67 in April 2010.
However, automotive businesses
saw a slight increase in late payment with automotive businesses paying
their bills16.67 days after agreed terms in May last year, rising to
16.86 days late in May this year.
Mark Wilkinson, Sales Director
for Experian Automotive business, said, “The decline in insolvencies and
improvement in financial strength in May is a good result for the
industry in the current economic climate.
“Feedback from automotive
businesses in the UK is that chasing debt is a key issue. For the
financial strength of the industry to remain buoyant, keeping in touch
with supplier terms, and managing risk around those, will remain key.” | | The owners of Kwik-Fit have agreed a deal to sell the car repair chain's insurance arm to Belgian insurer Ageas for £215m.
The deal, which is subject to regulatory approval, is expected to be completed in the next three months.
It will give Ageas, formerly known as Fortis, 600,000 more customers in the UK, on top of the one million it already has. | | | Car sales in Europe, which were up 2pc to nearly 6 million units from January through March compared to the year-earlier period, are likely to decline sharply in the second half of the year as scrappage incentives wane and consumers grow wary about the region’s economic health.
IHS Global Insight tells Reuters that fourth-quarter results will be especially bad because sales will compare with a strong year-earlier period.
The consulting firm predicts that continuing worries about Europe’s debt crisis may prompt consumers to postpone vehicle purchases until next year. | | | | |
Download the Wheels Within Wales toolbar for your quickest way to keep in touch with everything that's happening on Welsh roads and in showrooms or use our RSS feed for the headlines you will not want to miss
|
|
|
.gif){kind=small}