The president of Faconauto asks the government to put an end to the “imbalance” between manufacturers and sellers.
Spanish car dealers will lose more than 3,000 jobs due to the drop in sales in almost 100,000 registrations in 2019, according to the president of the Federation of Associations of Automotive Dealers (Faconauto), Gerardo Pérez. The executive explained that from the Federation they handle estimates that if the Spanish market loses between 100,000 and 150,000 registrations, the distribution of vehicles would have an impact on the employment of around 5,000 jobs.
Pérez, in a interview granted to Europa Press, said that currently, due to the fall in sales that has been recorded for months, recruitment at dealers “is paralyzed.” “Right now the contract is zero, if we continue at the current rate, it is very likely that between 100,000 and 150,000 enrollments will be lost, with which the concessionaire will have to make the decision to cut their structures, “he added.
The president of Faconauto, who celebrates two years in office, described this period as “positive”, but noted that it has been marked by convulsive moments, in which it has tried to explain how the market should be so that manufacturing in Spain continue to be important and that dealer networks continue at a good time.
Contracts with brands
In the face of the new legislature, the next government asked to take measures for the renovation of the aging Spanish automobile fleet, while demanding that “balance” the current situation of inequality between manufacturers and dealers.
“We are seeing the convulsive movements that are taking place in terms of contract changes in which certain articles are modified unilaterally, so the concessionaire needs a balance within a modern economy,” he said, noting that since Faconauto will continue to help networks to incorporate the tools that make their work easier.
Fall of sales
Regarding the closing of the market for 2019, Perez stressed that the initial forecast of the federation was that the current year will close with a fall of up to 5%, although he indicated that this figure is “short” and that the decline of the market will reach 7%, compared to 1.23 million passenger cars and off-road vehicles sold in 2018.
“I think we have fallen short and now we see a fall of approximately 7% if the circumstances remain as they have been until now. There are many months to reverse this trend, with a reasonably good economic situation and better consumer confidence, “he said.
According to Pérez, the situation of falling market can be reversed with the taking of appropriate measures, for which indicated that it is working with the Ministry of Industry, Trade and Tourism, with which there is a “magnificent dialogue” and showed confident that there is a plan for a “thriving” market.
Less profitability
Looking ahead to 2020, the president of the federation said that the market will remain flat, compared to 2019, even with a “slight fall” compared to this year, while the forecast of profitability on the network’s billing for 2019 is in 1.35%, compared to 1.6% in 2018. “There is an anomalous circumstance in any company that with a higher turnover by dealers, the average profitability is decreasing. It is tightening too much to networks, which, at the same time, are required investments, both in the digital part and in physical facilities, “he said.
On the other hand, the head of Faconauto stressed that the automotive market “suffers a lot” when there are electoral periods and requested that the Strategic Automotive Council put to work as soon as possible to implement the Strategic Plan of the Automobile, which was approved by the end of the last legislature. Perez, who pointed out that the Plan had the participation of all the relevant actors in the automotive sector, serves so that now there is an open document in which to work. “We have to start meeting and putting issues on the table so that this country has a national plan,” he said.
Diesel rise
Also, Perez defended that the issue of environmental impact is addressed from a perspective of market unity, since he indicated that the sector requires “clear, hard regulations if necessary, but the same in all regions.” At the same time, he recalled that the statements of the previous Government on diesel “did a lot of damage” and said that Spain is not prepared for the disappearance of diesel, since it is a manufacturer of vehicles with these engines.
Regarding a possible tax increase to diesel, Perez stressed that the automotive sector “is already heavily taxed”, with registration fees, VAT or fuel, among others, and stressed that what the automotive needs less “are more taxes” . “The car needs a lower tax burden, but that sales are maintained with incentives for the aging car park to be renewed,” he added. In addition, he stressed that the increase in sales of gasoline cars, to the detriment of diesel, is causing a rise in emissions of carbon dioxide (CO2).
SOURCE: GLOBAL CAR