One of the causes of the crisis affecting several sectors is that while poor results are given in one of them will end up affecting the other end of the network fabric. This is an engine for the economy when things are working well and a drag when things start to fail.
The automotive industry is one of the hardest hit by the current economic situation and this is beginning to be felt in all its ramifications. In a recent conversation with a head of a workshop I commented that mark important data on which it had not fallen and that the current problems of these companies is not limited solely to a drop in sales of vehicles, repair of small minor damage type minor scrapes and bruises (one of the most profitable) are starting to fall and the reason is the linkage of such repairs with insurance against all risks.
The relationship is pure logic, by reducing the sale of cars is reduced recruitment of insurance, since this is a strong links to vehicles with no more than 3 years old. This makes minor repairs to be out of the consumer’s pocket instead of insurance companies and not be a priority for the operation of the vehicle to stop with the consequent reduction in workload for the workshops.
Collateral damage that directly affect our industry and a branch as important as the automobile.