Car companies experienced a sharp drop in sales

Car companies experienced a sharp drop in sales

September 25, 2020 0 By autotimesnews

In the second quarter of 2020, the automotive industry was hit hard. The crisis hit the departments responsible for new car sales, and the drop in sales of almost 45% was the worst for all car companies.

People are less willing to buy new cars due to the economically unstable situation caused by the coronavirus pandemic. In the second quarter of this year, the decline in turnover in the departments responsible for the sale of new passenger cars amounted to 44.9%. Within one company, including used car sales and maintenance, the decline in turnover averaged 31.19%.

In the meantime, car companies again performed positively, averaging € 14,767 per branch in the first six months of 2020. However, this is mainly due to the NOW employer support program, which is used by 72.7% of companies. Without this scheme, the average result would be negative – an average of 27,292 euros per showroom.

The fact that sales of new cars are going through difficult times this year is also confirmed by quarterly data showing a sharp drop in turnover. As the temporary NOW scheme will be cut on October 1, massive layoffs are expected to take place. First of all, their businesses will be young people with fixed-term contracts, and their knowledge is extremely necessary.