April, May, June 'saw 72 new and used car firms fail'
24/07/2008Some 72 businesses in the automotive sector went out of business over the course of April, May and June this year, it has been reported.
According to Experian, this is the tenth highest number of insolvencies of any sector over the course of quarter two.
Indeed, 2008 has so far seen 134 automobile businesses go out of business - an increase of 10.7 per cent over 2007.
But it may have been that a secured loan would have helped the firms get back on their feet.
Experian automotive division's managing director Kirk Fletcher remarked that the industry expected 2008 to be a "tough year".
He said: "Conditions are tough and with fears of a recession on its way, most companies are now monitoring the profiles of the businesses they are dealing with and dealers may find that they are under more scrutiny than before."
Earlier this month, the base rate of interest in the UK was increased to 5.75 per cent.
 © Adfero Ltd
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