Saving the two-wheeler trade

Saving the two-wheeler trade

The winter has left the two-wheeler trade behind a period in which sales can only be made to a very limited extent. The resulting loss, which is reflected in almost all retailers with a negative balance in their bank accounts, should now be offset and then enough money accumulated to be able to economically survive the weak months of the off-season starting next fall. The Corona crisis has thrown a spanner in the works this year, explains Ferdinand Fischer, spokesman for the two-wheeler trade in the WKO: "All sectors whose shops are closed due to the situation will lose business in around three months, but the two-wheeler trade will lose a whole year. If there is no help, too little or too slow, a large part of the industry will not survive this time. But there is hope."

Hope 1: Emergency Fund

The government has set up an emergency aid fund worth billions. A very promising plan at first glance, which of course needs to be looked at in more detail later. Above all, whether the replacement of fixed costs will be sufficient for the two-wheeler trade industry due to the longer loss of income. The banks did not support the plan in advance. Although the state had guaranteed 80 percent and the banks would have only had 20 percent of the risk, in many cases they imposed extremely bureaucratic and complex conditions. Fischer: "Now that the government has increased liability to 90 percent, we hope that the banks will now make access to credit much easier. Especially considering the fact that the state helped the banks out of trouble with billions in 2009. Now they can return the favor."

Hope 2: Loyal customers

The two-wheeler trade hopes that customers will retain their motivation to buy a new bike this year. Whether this will be the case, of course, depends very much on whether and how we can reopen in April. In this regard, Fischer points out another important point: "The registration offices must also reopen promptly. We have the warehouses full of vehicles that we have already paid for, but which are not accepted by the customers and therefore not paid for. The customers cannot register them and therefore cannot park the bikes on the street. The same applies to bikes that we have stored over the winter, but which now do not receive their stored number plates, we cannot deliver them and therefore they remain Workshop invoices outstanding. A huge liquidity problem.”

Hope 3: Support from manufacturers

Even before Corona, the industry was not doing very well with an average return on sales of a very low 0.6 percent. With the crisis, the situation is worsening dramatically week by week. It will therefore be of great importance whether the manufacturers or importers provide substantial support to the two-wheeler industry during this difficult time: "KTM has announced that it will suspend this year's dividend and instead invest in strengthening the dealer network. A silver lining on the horizon. Now all that remains is for the other manufacturers to follow suit," explains Fischer.

Hope dies last

"As incorrigible optimists, we believe that all the hopes we have formulated will become reality, and this optimism is fueled by the courage of despair, because if even one of these points does not come true, we will be left with an economic shambles! But as Johannes-Mario Simmel wrote: Hope dies last," sums up Fischer.