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The rate of
insolvencies in the automotive sector almost halved from 0.12% in May 2009 to
0.07% in May 2010, according to the latest Insolvency and Late Payment indices
published by Experian.
As well as seeing a year-on-year fall, the rate dropped from 0.08% last month to
0.07%, the lowest since December 2007.
The financial strength of the automotive industry also saw a slight improvement
both year-on-year and month-on-month, going up to 79.71 from 79.31 in May 2009
and from 79.67 in April 2010.
But companies saw a slight increase in late payment with automotive businesses
paying their bills 16.67 days after agreed terms in May last year, rising to
16.86 days late in May this year.
Mark Wilkinson, Sales Director for Experian Automotive business, commented: “The
decline in insolvencies and improvement in financial strength in May is a good
result for the industry in the current economic climate.
"Feedback from automotive businesses in the UK is that chasing debt is a key
issue. For the financial strength of the industry to remain buoyant, keeping in
touch with supplier terms, and managing risk around those, will remain key.”
Source:
RedAlert
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