The health emergency hits the strategic automotive sector hard
by Pier Luigi del Viscovo
3 ‘of reading
All the boot is a cahiers de doléances, but the auto dealership industry this time is in dire need. A report from therating agency Crif, on the financial impact of the coronavirus emergency on Italian SMEs, which Il Sole24 Ore was able to view, lists it among those who already “start from a more liquidity-critical situation”, indicating that “more than one company out of two already start from a situation of limited financial flexibility “.
According to this report, the sector, “among the most vulnerable in the current economic context”, expresses a “financial requirement of around € 2 billion”.
What is needed was indicated by Federauto, the association of dealers. That the concessions on the payment of contributions, envisaged for companies with a turnover of up to 2 million, are also extended to dealers. That the ceiling of 700 thousand euros / year for the compensation of VAT credits becomes monthly. That the concessionaires are included in companies that can benefit from liquidity support, in the form of the guarantee offered by the State, pursuant to art. 57 of DL Cura Italia.
These are urgent measures. “First aid is needed for car dealerships, otherwise many will fail.” So Gianluca Italia, former FCA number one in the Italian market and today owner of Overdrive, a large Milanese dealership, which is part of Intergea, one of the first groups in the country.
But in one crisis as serious as from unknown perspectives, it is natural to ask whether it is really appropriate to give priority to car distribution. After all, let’s talk about machines, a product of which the Italians are already sufficiently supplied and a durable good whose purchase, even if postponed for a few months, sooner or later will arrive.
First of all, it is not a question of giving priority but not forgetting about it. There is a nice difference. Specifically, i government measures they risk being ineffective towards these companies, due to their particularity: with an average turnover of 30 million, they do not fall within the ceiling foreseen by the decree of 2 million.
Instead, they should be understood, because that turnover is inflated by the value of the cars, net of which they are simple distribution companies, each on average with some sales points and a repair shop.
Cars are worth a lot but the added value for those who sell them is low. So much so that their profit before taxes travels, in good years, just above 1%, as reported by the Dekra Financial Statements Observatory.
Furthermore, there is their social weight. With about 50 billion turnover, almost equal 3 points of GDP, the dealers employ over 120 thousand workers, who arrive at 200 thousand with the many small and very small companies that provide them with some real services, from logistics to marketing, from software to media.
