According to the Committee of Automakers Association of European Businesses in Russia, sales of foreign car brands grew by 36% in the ten months of 2008 and 9% in October 2008. The situation at a glance from the outside, quite stable. What do I think about it, market participants themselves? With this question, we asked the dealer Skoda Auto in Russia the company "Atlant-M Tushino. Since we interviewed CEO Sergei Yakimovich, head of sales of cars Paul veins and Deputy Director of Marketing Alex Lazarev. "Avto.ru: What about selling cars now, in a tough financial crisis? Are there any changes? Paul Zhilko: The main change is, in essence, that banks have less to lend, ie, worsened conditions, increased requirements for borrowers. There is currently a very high percentage of refusals of applications for credit. Some banks have simply stopped issuing loans, some banks have worsened conditions for the issue. We are now confronted here with an example, the situation. Client hires a car in August, but now, when the car arrives, the conditions in the bank are not the same on which he relied. Buyer neither morally nor financially ready for new conditions and refuses to deal. All this has an effect on sales and market situation. "Avto.ru": Do not diminished number of people willing to buy a car on credit? Sergei Yakimovich: If you now go to the credit department, you will see many wanting to take credit. Buyers have to send applications to several banks, according to the principle of "who will". And when the application is submitted to several banks, beginning the so-called secondary wave, which is why banks are beginning to consider applications for very long. So in addition to confidence in the lending market there is still a huge number of applications, which also adds the bank. Now the load on our staff involved in lending, has increased. In particular, today (Editor's note. - Interview took place on Nov. 20, 2008), we have to plan - a collection of the sales department, where employees of the Division of financial services will make a report to sales managers about the current situation so that they reflect this in their work in dealing with customers. "Avto.ru": Does anything in order to somehow change this situation? Maybe there's some sort of win-win solution? Alex Lazarev: Just recently held a conference with the participation of dealers and representatives of banks, which are very serious consideration to this issue. Dealers have expressed their wishes, comments, and representatives of the banking industry promised to improve its lending. "Avto.ru: Which date do you mean? Will it improve the situation with credit until the end of the year? Paul Zhilko: Dates are not called. Now generally difficult to find someone who would call any specific time frame. Banks say they are tied to rates on the interbank lending market. They are constantly growing, so banks have to raise the ruble-denominated loans. Also, now banks are pushing people to borrow in dollars, for fear of devaluation. Potential buyers, fearing the same, do not want to borrow in dollars. Everybody wants to take credit in rubles, in spite of the fact that rates on ruble loans have reached 18-20% and in dollars - only 14-15%. "Avto.ru": This is the only factor affecting the sales now? Paul Zhilko: Bank failures in the loan - this is the first factor that affects the sale. In addition, it lengthens the period of issuing machine. Number of days that the machine carries on our stock increases, because increased time for consideration of an application for a loan. And this, of course, also affects us. The second factor I would single out, in addition to these objective reasons - it is psychological. People are scared by the flow of information that comes from all media. Many simply refuse to buy a car, arguing about this: I thought about it and decided that for me is not the time to buy a car, poezzhu on what is, somehow interrupt, wait, peresizhu. Someone refusing to purchase, refers to a deterioration in personal financial situation - a reduction of work, etc. But this percentage is much lower. "Avto.ru: You're talking about the new conditions. It applies only to banks' relations to potential borrowers or price of the car in the cabin, too, grew up? Paul Zhilko: No, prices for cars have not grown. They became even more accessible. First, in August we began the production of Skoda Fabia in Kaluga, resulting in a price for it is very substantially reduced. And in-class price for the Skoda Fabia - is one of the best offers on the market. Now, despite the crisis, we feel the growth in sales of Fabia. For the buyer price of the car has not changed. When a client is thinking about buying a car on credit, it is important not so much money, how much monthly payment. If a potential buyer offers to credit is not the amount by which he expected, and less (often the size of the loan just "half"), he needed somewhere to find the missing part. And if the client is counting on the rate of 14-15% per annum in rubles and was offered a 18-19%, it significantly increases the monthly payment. Moreover, many potential buyers are worried that banks are only now begin to add the item to the treaties, under which the interest rate during the loan period will not change. I recall that some banks may change the rate to the extent that will grow as refinancing. Sergei Yakimovich: Now, given the fact that prices for cars are not only not increased but even decreased, the purchase is advantageous to those who buy for cash. However, in view of the above, the decrease in the number of those who are willing to buy a car on credit. The bottom line, we get that sales of "Atlant-M Tushino in October - the second in 2008 at the moment. A record we had in April. In general, in October we have second highest sales month this year after April. So that we can not say that there is a collapse of sales in November, we expect to sell no less than in October. "Avto.ru": Do not have any plans to change the price range of Skoda? Paul Zhilko: The prices are an importer, and it is rather a matter for them. According to our information, the prices of Skoda will remain at 2008 levels. In addition, prices in the next year may even decrease because there will be a great location assembly in Kaluga. Sergei Yakimovich: I want to stress the importance of the importer. In the crisis of survival of the fittest, the strongest so importers will strengthen its position, and weak, respectively, will weaken. It is therefore very important how to conduct their work in a concrete importer. It can significantly influence the situation and help dealers who hard it is to redeem the machine, because the banks put heavy conditions. Accordingly, it will be very important, whether importers are willing to improve their condition, go for the delay in payment, increase payment period, to provide even some help to organize the additional shares, etc. "Avto.ru": Now, due to the difficult economic situation that motorists may give their preference for cheaper equipment, more expensive models, or cars with mileage. As potential buyers come in if the bank gives the loan is less than requested? Sergei Yakimovich: In this case the customer the following options. First, stop buying new and selling old car and wait for the fall rate, or stabilize the situation with car loans. The second option - actually go to buy a cheaper model. However, the Skoda model range this is not observed, because the cheaper model is less than the body. If a person needs Octavia, Fabia is on it does not change. Even if such a trend will, if someone of us go, then someone will come to us. Maybe that's why we do not feel the vibrations of the market. There is probably no single trend. In addition, we have quite a serious corporate database (40%), and this greatly helps us. "Avto.ru": The corporate base dominates the commercial segment, or government entity? Sergei Yakimovich: We have - commercial. We can not say that our corporate clients are cutting budgets and refuse to purchase. Our clients - stable company. "Avto.ru": There is now a view that in a crisis will feel better carmakers with manufacturing facilities in Russia. How can you comment on that statement? Paul Zhilko: I agree with this statement. Especially now, when we are talking about a possible increase in import duty to 30%. For us, the production in Russia - a big plus. All prodazheobrazuyuschie model will be most localized. "Avto.ru: What is the outlook for sales of Skoda cars by the end of the year? Paul Zhilko: According to the plans Skoda, sales in 2008 in Russia to exceed the bar to 50 thousand cars. Sergei Yakimovich: Now a little bit complicated conditions of sale. Firstly, due to difficulties with car loans. Secondly, everyone started to give discounts, so we had to adjust to changing conditions. There is another point, which complicated the work environment. IV quarter we always have a record. In August, we, like most dealers, rent a car a little more than I should. But this is not a problem, they will be sold out - we took a number of operational measures and align them with the importer. And by the end of the year, we hope, will give us an additional deferral of payment. "Avto.ru: In recent years, manufacturers and banks are beginning to" prim "dealers on payments. In general, the market is not observed amplification of this trend? Sergei Yakimovich: The company Skoda, understanding the severity of the current world situation with finances, she offers us options. In addition, most recently holding "Atlant M" put out a bond issue worth about 1 billion rubles than proved its stability and creditworthiness. In this regard, we hope that banks will be more loyal to us treat. If you talk to the whole market and think more long-term category, all more or less normal. Automotive business remains fairly stable and profitable direction. Global and long-term decline in demand is expected. Over the next three to five months, dealers sell out surplus stores will reduce orders to restore liquidity, reduce costs, etc. In recent years the market grew at a pace that even a drop of 20-30% - this is just a return to the level a year ago. If you remember, most dealers felt himself perfectly at the time. Of course, put the brakes on new car centers, which will undoubtedly affect the development of the market, but it is - not a disaster. Disaster - it's completely taken away when the banks lending money from dealers, and then the dealer gets into a difficult situation, because money in circulation, and return them once the dealer can not. But, by and large, this is the banks do not need. Banks need the dealer to service the debt and gradually return borrowed funds. Most dealers are able to do so. And seize the dealer's bonds and sell them later, attacking the price of cars and buildings auto centers - is not the most profitable way for banks. Most likely, the banks would seek a compromise solution. If there is no "bank extremism", the most powerful dealerships will survive and even grow. "Avto.ru": At the recent conference "Avtobizon" it was that profitability may shift from sales to service. How can you comment on that? Sergei Yakimovich: We've seen it already. Return on sales decreased from the discounts and gifts, but the service continues to be very stable. We hope that customers will appreciate the quality of our service and continue to come to us. "Avto.ru": Thanks for the interview. We hope that developments in the Russian automotive market will still at the most positive scenario.
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