Car Industry Insolvencies Decrease

New reports from Experian have shown that corporate insolvencies in the car industry have fallen significantly with a year on year drop adding to a remarkable 50% fall from March to April this year.

It is thought that an improvement in late payments is the main reasoning behind the fall with car dealers paying bills far quicker than they had done previously.  This is also helping the financial strength of the car industry as a whole.

However, despite yet another improvement in late payments for April, the car industry actually fell in the ranking from 3rd down to 10th, this was because they have seen a significant improvement to achieve that status.

Mark Nuttall, general manager of Experian’s Automotive business, said, ‘The decline in insolvencies and improvement in payment performance in April has meant that the financial strength score of the industry has remained buoyant this month.

‘It seems the other sectors are catching up with automotive dealers in understanding that paying bills late can be detrimental to their business credit scores, business relationships, lines of credit and subsequently the business as a whole.’

It is now widely thought that the car market is seeing a turn for the better after suffering very badly as a result of the recession.

Posted at 04:04PM May 24, 2010 by Marc Stenton in Insolvency  |  Comments[0]