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month-on-month Automotive business failures rise in September

 

But year-on-year figures remain stable

 

Nottingham UK, 29 October 2009 - The automotive industry saw the rate of insolvencies increase from August to September, according to the latest Insolvency Index from Experian®, the global information services company.

 

The business insolvency rate for the automotive industry (the percentage of total automotive businesses in Great Britain that failed) had reached 0.09 per cent in August, the lowest rate since January 2008.  However, in September the rate rose again to 0.12 per cent – the same level as in September 2008.

 

The total number of insolvencies increased by 35.5 percent from August to September (up from 31 to 42) and by 5.0 per cent from September last year (up from 40 to 42).

 

The health of the automotive industry, as measured by Experian’s financial strength score which predicts the likelihood of a business failing in the next 12 month, improved from 79.32 in September 2008 to 79.58 in September this year. 

 

Mark Nuttall, General Manager of Experian’s Automotive business, said: “The insolvency rate for the automotive industry did rise from August to September, but it is important to take a look at the wider view.  Despite a few odd peaks throughout 2009 so far, the overall insolvency rate is reasonably stable.  .  This is particularly evident when you compare this year to 2008, when the rate of insolvency in the automotive industry was particularly volatile.

 

Insolvency Rate

Sept 2009

Sept 2008

Aug 2009

Automotive

0.12%

0.12%

0.09%

All sectors

0.09%

0.09%

0.09%

Source: pH, an Experian company

 

Insolvencies

Sept 2009

Sept 2008

% change from Sep 08

Aug 2009

% change from Aug 09

Automotive

      42

      40

5.0

      31

35.5

All sectors

  1,694

  1,782

-4.9

  1,783

-5.0

Source: pH, an Experian company

 

Financial Strength Score

Sept 2009

Sept 2008

Aug 2009

Automotive

  79.58

  79.32

79.71

All sectors

  80.79

  80.20

80.79

Source: pH, an Experian company

 

ENDS

 

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