The car industry has been hit hard by a decline that can be felt all the way into the car dealers' premises, which are currently closing in record numbers.
In the course of the first half of 2024, the number of bankruptcies among car dealers has increased significantly. And not only that.
In Sweden, you can actually see that a record number of car dealers are turning their backs. This shows figures from the credit information company Creditsafe, which Dagens Industri brings.
The National Association of the Motor Industry, MRF, believes that the reason for the record number of bankruptcies is to be found in the fact that car dealers' finances are often not solid enough.
It is especially small and new car dealers that are affected by bankruptcies. But the big retailers can also succumb. On the other side of the Øresund, a larger leasing company went bankrupt at the beginning of the year.
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Many of the customers, however, rely on leasing contracts. Therefore, they first feel something about the bankruptcy on the day the car has to be returned. The curator keeps the business open until the last leasing contract expires.
In this way, they hope to keep some of the creditors' money at home. However, bankruptcies also affect the car industry here at home. For example, an entire part of the country is almost empty of car brands. In 15 years, as many as 15 car brands have disappeared. Read more about it here .
There are also plenty of scandals here at home. A well-known car dealer in Hedensted went home because the consumer program 'DR Kontant' exposed his illegal business methods in prime time.
And in 2020, one of the country's largest leasing companies went bankrupt when it was exposed in accounting fraud. Something that led to an additional bill in the form of VAT of almost DKK 33 million. Read more about it here .
Read more exciting news from and about the world of cars right here!
