March 18, 2020
Category: Faconauto News
In most European countries, dealerships are being closed to stop the virus.
The coronavirus is causing an unprecedented situation so far in recent years. With each passing day, the different states impose more restrictive measures for the movement of citizens and all businesses with the aim of stopping the virus. Along these lines, dealerships close their doors throughout Europe due to the coronavirus.
As indicated, in the vast majority of countries, official dealership services such as repair services will have minimal emergency equipment. This is considered an essential service to keep public safety vehicles on the road.
The association of European distributors, CECRA, explained that these closings will have important consequences for all European distributors. “The closings will have a major impact on the profitability of our members, but we must first respect the hygiene actions and measures of their governments. It is a great challenge for us ”, explains its director.
For their part, most dealer associations in different European countries have advocated the closure of dealerships. This is the case in Spain, France, Italy or Belgium. On the contrary, in the United Kingdom there has not yet been a clear order prohibiting the opening of these establishments.
Significant damages in the lawsuit
On the other hand, Fidentiis, a group of investors, warns that automakers could suffer more from this crisis. Fundamentally, for lack of demand As pedestrian traffic to dealerships is depleted and consumers prepare for shock waves at an economic level.
“The real problem is on the demand side. People are not buying cars now. Sales volumes are expected to be very poor in March, with a real impact on automakers’ earnings, “explains the Fidentiis analyst.
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