ICSM Credit warning over reduced motor industry due to Covid-19: supply the industry by all means but make sure you get paid
Last month car sales dropped by 97% with just 4,321 new vehicles registered. It was the lowest figure since 1946 when petrol rationing was still in force following the Second World War. That helps to put it in context, but Ian Carrotte of ICSM Credit said it is creating a potential debt problem and an issue for suppliers to the motor industry as their cash flow has dried up.
He said: “McLaren has just cut 1,200 jobs, Vauxhall have announced they won’t be back to full production for months if not years, and all the other manufacturers are in the same boat.
“This will have a knock-on effect to the motor industry. Showrooms are opening next month in the hope things will pick up - but will they? Vehicles are back on the road but without cash flow many suppliers to the manufacturers and showrooms may well find invoices are not being paid promptly. With higher unemployment and fewer companies taking on fleets of new cars the market is stalled. ICSM Credit members have already raised concerns about motor related firms not paying on time and this is only the start of what could be a difficult period.”
He stressed that all suppliers to the motor industry whether they were printers, couriers, hauliers or parts manufacturers should take advantage of ICSM Credit's free temporary membership. Membership helps to keep firms in the credit loop of finding who is paying on time or about to go bust.
"In the next few months many firms will go out of business so knowledge is vital," he said. "Join ICSM Credit for free and get some peace of mind."
ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk