Germany allowed to open car dealerships

Germany allowed to open car dealerships

April 17, 2020 0 By autotimesnews

Car dealerships in Germany will be allowed to resume their activities immediately, as the government of Chancellor Merkel weakens measures to block COVID-19 in Europe’s largest market.

According to Autonews Europe, this move was anticipated by automotive lobby groups that issued numerous warnings about dealerships facing bankruptcy.

VDA lobbying group of manufacturers said the opening of dealerships is an “important and necessary step” on the path to increasing production. “There is no production without sales,” said VDA President Hildegard Muller.

Despite the fact that no specific date has been set when most dealerships will be opened, industry groups expect some car dealerships to resume their activity on Monday, but Opel has already confirmed that this will happen – thus, it will become the first German automaker. which will open after quarantine.

“This is an important step towards a normal life that will gradually return sales momentum,” said Opel CEO Michael Löscheller.

After nationwide isolation was declared on March 16th, sales of new cars in Germany fell 38%.

Merkel and 16 state leaders of the country have developed a plan to open stores with less than 800 square retail space, which include bicycle shops and bookstores. A limit of 800 square meters will not apply to car dealerships that have relatively large areas that can facilitate social distance measures, unlike supermarkets or other stores.

“We are very pleased to see that there were no restrictions on the size of the dealership, because it would put certain enterprises at a disadvantage,” said the VDA.