Automobile News

Inchcape, the world’s largest car retailers is facing a heavy down fall in its profits due to the worldwide recession. An unprecedented and sudden slowdown in the market has badly affected the sales of the company. Inchcape is into the distribution and retail of cars from premium brands, such as Audi and Mercedes-Benz. The stock market crash and drying up of customer’s credit has lead to heavy losses and above this the company will be now facing new import duties in Russia starting from next year.

The financial condition still continues to decline as the GMAC, the company in Australia which provides vehicle finance through Inchcape’s showrooms will stop doing the business with the Inchcape from January onwards. Andre Lacroix, Chief Executive said, “Demand is very weak in the UK, which provides half of our revenues. But carmakers are reducing production to keep supply in line with demand, which is very welcome.” According to him the company had anticipated a fall in the UK sales but didn’t expect such a heavy economic slowdown in the Australia and Hong Kong markets.

However Lacroix also commented that, “Markets will recover in due course and we believe that Inchcape is best positioned to benefit from its strong market positions and its long standing relationships with the leading manufacturers.”