Thursday, November 06, 2008
Automotive insolvencies accelerate
Motor trade insolvencies rose by 18% year-on-year during the third quarter of the year. Latest figures from Experian show that 67 businesses failed during the period, although this was better than other sectors in the UK.
The automotive industry recorded the 17th highest number of insolvencies out of the 36 industries surveyed and the 18% increase was much better than the 28.2% average increase across all sectors by some margin.
The latest increase follows a seven-year high recorded in the second quarter of the year when business failures soared by 30.9%.
Kirk Fletcher, managing director of Experian's automotive division, said: "Our analysis highlights why it is important for automotive businesses to know that their customers and suppliers have the means to pay their bills.
"The best way for automotive businesses to protect themselves is by continually monitoring customers' and suppliers' commercial integrity. Access to this level of detailed insight will provide them with the intelligence to help them manage their exposure to risk."
DATED: 06.11.08
FEED: AW
