Automotive Insolvencies Fall in June
Late payment rises to highest point since December 2008
Nottingham, 29 July 2010 — The rate of business insolvencies for the automotive industry fell from 0.13 per cent in June 2009 to 0.09 per cent in June 2010, leaving the number of actual insolvencies at 31 from 44, according to the latest Insolvency & Late Payment indices from Experian®, the global information services company.
However, payment performance amongst automotive businesses, itself an indicator of business confidence took a significant dip in June. The number of days beyond terms that automotive businesses paid their bills increased to 17.01, a high not seen since December 2008.
The financial strength2 of the automotive industry also saw a slight fall year-on-year, declining to 79.74 from 79.79 in June 2009.
Joe Myers, Director of Commercial at Experian, said: “Although the insolvency rate is much better than this time last year, there’s no doubt poor payment performance in June had an adverse affect on the financial strength of the industry.
Dealers need to ensure they stay within their payment terms, this is vital to maintaining a good business credit score and a low risk profile, key factors that help dealers retain their business relationships and lines of credit.”
Insolvency rate |
June-10 |
June-09 |
May-09 |
Automotive |
0.09% |
0.13% |
0.07% |
All sectors |
0.09% |
0.10% |
0.08% |
Insolvencies |
June-10 |
June-09 |
% Change from 09 |
May-09 |
Automotive |
31 |
44 |
-29.5 |
24 |
All sectors |
1,771 |
2,044 |
-13.4 |
1,491 |
Financial Strength Score |
June-10 |
June-09 |
% Change from 09 |
May-09 |
Automotive |
79.74 |
79.79 |
-0.1 |
79.71 |
All sectors |
80.83 |
80.66 |
0.2 |
80.70 |
Days Beyond Term |
June-10 |
June-09 |
% Change from 09 |
May-09 |
Automotive |
17.02 |
16.86 |
3.4 |
16.46 |
All sectors |
20.98 |
20.91 |
-12.2 |
23.89 |
ENDS
Contact:
Natalie Hale
0115 992 2645/07971 709 274
natalie.hale@uk.experian.com
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
For more information, visit www.experian.co.uk.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit www.experianplc.com.