A dealership has filed for insolvency: Reasons.
The Weber car dealership in Güssing has become insolvent and applied to the Credit Protection Association 1870 due to payment defaults.isenstadt regional court for restructuring proceedings without self-administration.
The Weber car dealership located in Güssing is looking forward to a fresh start this spring.
February 28, 2024 Thomas Orovits contributed to this report, ARI-SK
The Weber car dealership in Güssing has been in business for over 50 years. However, the family-run company, which has 21 employees, has now filed for insolvency at the Eisenstadt regional court.
The liabilities amount to 720,000 euros and the assets to 343,000 euros, as reported by KSV1870 on Tuesday.
Managing director Peter Weber is determined to continue after the restructuring process, saying “of course we want to continue” to the KURIER.
However, the car sales in Burgenland is struggling as there are still only 50 to 60 authorized dealers, according to Stefan Kneisz, chairman of the vehicle trading division in the Chamber of Commerce.
The trend is falling with only 6,500 new cars registered in the country last year, compared to the peak of 9,500 vehicles a few years ago. Kneisz identifies three reasons for the decline: interest charges when storing the cars, energy costs for showrooms and workshops, and labor costs.
The pandemic has also played a significant role in the fall of car sales, with new car sales falling by 30 percent compared to the pre-pandemic period, according to Kneisz.
However, the temporary boom in electric vehicles has mitigated the decline. In the current insolvency case in Güssing, the pandemic is also listed as one of the primary causes for the company’s financial difficulties.
Source Kurrier AT
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