First victims of financial crisis in the automotive business

Showrooms dealership one of the largest holdings in Russia, "Incom-Auto, soon to poverty - there cars disappear Korean brand SsangYong and Italian Fiat. Now the dealer is selling at discount prices remains of cars in a promotion held under the slogan "Cars cost less than the price!" Sollers (former Severstal-Auto) reported a cessation of supply of cars in Incom-Auto, in a letter sent to all dealers to brand SsangYong. It announced that from October 13, 2008 "Incom-Auto is no longer an authorized dealer of Korean and Italian brands. Representatives of the Concern Sollers explained the reason for the break in relations with Incom-Auto, so that the latter had violated a number of agreements, namely, began to sell cars brands Fiat and SsangYong without permission. However, there is anecdotal evidence that the reason for such a move was the lack of payment. Postponement of ninety days in this case is not provided because the producer questioned the solvency of the dealer. In addition, officials say the dealer that threatened their partnership with automotive brands such as Hyundai, KIA, Chery and UAZ. The reason - the inability to purchase on credit a new batch of machines. Incom-Auto, like many other companies in the crisis erupted, suffers from a lack of working capital and trying to solve this problem by any means. However, representatives of the Chinese brand Chery expressed their willingness to make concessions to the dealer in a crisis. Share sale cars SsangYong and Fiat is in full swing. Prices have fallen so much that the salons have almost no such machines. Thus, the cost crossover SsangYong Actyon has declined by about 13 thousand rubles. - Up to 743.07 rubles. And hatchback Fiat Grande Punto about 30 thousand rubles. - Up to 399.9 thousand rubles. Note that the cars sold in the shares after 13 October 2008, ie after the "Incom-Auto, ceased to be an authorized dealer of Sollers, will not be served properly, it's almost a" gray "party. On the question of what will happen to those who bought the car brand Fiat or SsangYong before October 13, 2008, said the PR-manager Favorit Motors & Yoshida Corp. Igor Lebedev: "We, as official dealer marks FIAT and SsangYong, aware of the problems of" Incom-Auto with Sollers. The company Favorit Motors, the official dealer marks FIAT and SsangYong, does not experience such difficulties. We accept the obligation to warranty and SsangYong cars FIAT, bought in Inkom-Avto "to October 13, 2008. On a monthly rating Sollers we are the first auto sales SsangYong and FIAT in Russia in August-September 2008. In terms of consumer value for money car Sollers can be called a close to optimal. At the same margin in Fiat average when compared to other cars of the segment, and by SsangYong - rather high. Financial terms of cooperation we regard as satisfactory. Car payment system is flexible enough, there are options for deferral of 30 and 60 days. Queues at stations in real time within a day or two, and maintain these vehicles, amid profit service other brands, it is advantageous. Reference: Inkom-Avto "includes the company" Inkom-Lada, LLC Autotrade "and" Auto Center ". Holding company owns 49 dealerships in Russia and Ukraine in the package its brands include Daewoo, Kia, Renault, Ford, Chery, Fiat, Ssang Yong, Opel, Chevrolet, Cadillac, Volvo, Volkswagen, Skoda, Honda, Peugeot, Geely, ZX , JMC, Mitsubishi. From Report Uralsib that debt load, "Incom-Auto, higher than that of other dealers: in 2007, net debt / EBITDA ratio decreased to 4.2 (in 2006 this figure was 6.6), and in the first half of 2008 it increased to 4.9. Net debt from January to June 2008 rose 66% to $ 341 million, although at the end of last year it amounted to $ 205 million. In comparison, net debt / EBITDA of companies "Rolf" and "Autoworld" at the end of 2007 reached figures 1,3 and 2.7, respectively. To pay off the bonds holding company had to tighten the straps tighter: halted construction of two shopping centers, "Incom-Auto Kashirskoye in Butovo. The money saved will help pay 31.16 million rubles. in November 2008 and 1,4 billion rubles. in February 2009. Continuing the theme: "Incom-Auto will sell one-third share