Auto market downturn is about to enter high-risk auto 4S shop run on-4S shops, auto repair, auto - A

An automobile in a 4S store brand as a manager friend recently left the automotive industry. Allegedly, this severe loss this year, 4S shop. A brand of a car dealer, said the veterans of the gears up for the past two months, the vast majority of car dealers are not better than the day because the auto market downturn.



Last month, Billboard wrote, "China's auto market is entering the" difficult process "" article that the Chinese automobile market correction has become an indisputable fact; this month, Billboard wrote "Security is there for the nest egg "article that the stock market bow, the housing market to freeze up the economy car market can do!



In April and May this year, two months, car market sales have fallen sharply, first to the live Market The first line of the dealer. Can be predicted, the Chinese auto market, the momentum continues to decline temporarily difficult to change, the economic benefits of dealers will be affected. In the domestic and international economic downturn and the spate of natural disasters in China against the background, auto dealers are about to enter high-risk runtime.



A dealer boss recently frown, he said, auto market downturn, economic downturn or even a loss to be followed, the most terrible is the inventory of a large number of end pressure, as well as macroeconomic tightening again, re-financing to bring pressure to mess it will run out of cash-strand breaks caused by bankruptcy.



Automotive industry has a special, each manufacturer had to be scheduled next year's production, automotive parts must also be the first year of global sourcing. Production schedule, the plants and parts manufacturers have to enter into supply contracts, once signed to the contract can not be changed. Because some manufacturers are in the scheduling time of caution, because the auto market in 2004 after the "winter", has allowed manufacturers and authorized dealers to eat enough of the Yaku bug.



Last year, the Chinese automobile market situation is good, we all optimistic about 2008, so in 2008 the manufacturer of the scheduling scheme is very positive, production scheduling easier and less. As the saying goes, "Accidents will happen," first quarter of 2008 auto market fully intact, but in April but drastic changes, deteriorating economic situation at home and abroad under the influence, began to sharply decline, the trend changed.



Bad trend, but the production schedule must be sold. So the manufacturer only to authorized dealers Yaku, dealers welcome round of sales is not a peak, but Yaku peak. Authorized dealers and manufacturers signed an annual contract for the sale, if not reach the number of contracts, rebate on little more serious losses.



However, more inventory, had barely functioning. 7 June the central bank announced the increase of the reserve ratio by 1 percentage point, indicating the central bank will continue to strictly implement a tight monetary policy determination. This time dealers are even harder: the time from the factory into the car, is a penny Less of. Automobile market in the doldrums, but drove into a much less sold, inventory piled up.



More inventory brought two consequences: First, dealers are not proud of losing money for the Yaku big sale; Second, the resulting cash flows in financial straits as a result, a straw will be able to crush a 4S shop. It is said that one large company, please contact the company to do a special analysis of forecasts: the end of 2008, auto dealers will mark the climax of collapse. This may not be an alarmist!



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