Experts predict massive car dealership bankruptcies this year
- June 6, 2022
- 0
Since the supply of new cars of most brands was suspended due to the Ukrainian special operation, official dealers turned their attention to the sale of used cars
Since the supply of new cars of most brands was suspended due to the Ukrainian special operation, official dealers turned their attention to the sale of used cars and after-sales service – after all, you have to make money somehow. However, according to experts, this will not save many retailers and by the end of the year the number of car centers will fall sharply. Although the retailers themselves still think differently…
A disappointing prognosis was issued by Rolf CEO Svetlana Vinogradova. In an interview with our colleagues at Vedomosti, she said that by the end of 2022, about 1,600 official dealers will remain in Russia – half as many as in April. Moreover, according to her, this is the best scenario for the development of events.
The Russian Dealers Association (ROAD) is more optimistic. They assume that a third of the car centers will close. Other experts believe that some salons may lose their “official” status, but will continue to operate and focus on automotive after-sales service. At the same time, only 15% of dealers face a real threat of liquidation.
Indeed, the industry is experiencing serious difficulties and many companies are changing hands. For example, a few months ago the British holding company Inchcape was resold in Russia, but now the St. Petersburg “Maximum” is looking for a buyer. However, all these legal disruptions do not affect customers in any way.
In the same “Maximum” (“Maximum Sever”, the official dealer of Kia), the AvtoVzglyad portal was informed that there are now no conditions for closure and that the car center is working normally. About the same, we were told in the capital companies “Major” and “Avtomir”: “the situation is not easy, but so far everything is fine, we do not intend to stop operations this year.”
SUBSCRIBE FOR EXCLUSIVE CONTENT
PORTAL “AVTOVGLYAD” IN TELEGRAM
Photo: AvtoVzglyad
A disappointing prognosis was issued by Rolf CEO Svetlana Vinogradova. In an interview with our colleagues at Vedomosti, she said that by the end of 2022, about 1,600 official dealers will remain in Russia – half as many as in April. Moreover, according to her, this is the best scenario for the development of events.
The Russian Dealers Association (ROAD) is more optimistic. They assume that a third of the car centers will close. Other experts believe that some salons may lose their “official” status, but will continue to operate and focus on automotive after-sales service. At the same time, only 15% of dealers face a real threat of liquidation.
Indeed, the industry is experiencing serious difficulties and many companies are changing hands. For example, a few months ago the British holding company Inchcape was resold in Russia, but now the St. Petersburg “Maximum” is looking for a buyer. However, all these legal disruptions do not affect customers in any way.
In the same “Maximum” (“Maximum Sever”, the official dealer of Kia), the AvtoVzglyad portal was informed that there are now no conditions for closure and that the car center is working normally. About the same, we were told in the capital companies “Major” and “Avtomir”: “the situation is not easy, but so far everything is fine, we do not intend to stop operations this year.”
SUBSCRIBE FOR EXCLUSIVE CONTENT
PORTAL “AVTOVGLYAD” IN TELEGRAM
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
