Frey Automobile closures: The automotive industry is asking

Frey Automobile closures: The automotive industry is asking

Ms. Frey-Winkelbauer, the company Frey Automobile will close its two locations in Vienna Inzersdorf and Vienna Donaustadt at the end of the year and will no longer carry out any sales activities for the Toyota and Lexus brands in the future. How did this come about?

Anja Frey-Winkelbauer:On the one hand, the developments in the automotive market in recent years have led to this: the use of alternative drive technologies, but also digitalization, the new requirements for sales and thus also the dimensions of the locations (car dealerships). We have always built our car dealerships generously and operated them exclusively for the Toyota and Lexus brands. Added to this is the international tendency of importers to increasingly take over sales in the markets themselves - both in the fleet business and, in the future, via online trading. Falling contribution margins due to the extreme cut-throat market in the classic retail business also make profitable business more difficult. On the other hand, the effects of the Covid crisis have played their part, acting as an accelerant, so to speak. Due to the sharp drop in sales figures, the situation has worsened not only on the domestic but also on the international automobile market. In response, we have already taken appropriate measures in recent months by reducing our locations and concentrating on the two remaining car dealerships in Vienna, Inzersdorf and Donaustadt. Unfortunately, the continuation of sales for Toyota and Lexus in this form has not met with approval from the importer, Toyota Austria. This has led to us now also closing these two locations at the end of the year. 

What will happen to the remaining brands Aston Martin, MG and Maxus? Will the brands continue? Or will the Frey family withdraw completely from the domestic automobile business? 

We are currently in very good discussions for the remaining brands. However, as there are no concrete results yet, I cannot provide any further information at this time. 

If that means a complete withdrawal: Does that mean that, as a business economist, you are fundamentally skeptical about the domestic automobile trade? Or would it not be possible to build an attractive business with the remaining brands?

Our family has been in the automotive business for decades. Accordingly, we view the industry with great passion, but also with a healthy dose of economic objectivity when it comes to the current situation and the forecasts for the future. Of course, it will still be possible to do business with the automobile trade in the future - but under changed conditions (keyword: smaller sales areas, more extensive digitalized processes).

How many employees are affected by the closures? 

40 employees are affected by the closure of Vienna Inzersdorf and Donaustadt. We have developed a generous social plan for them and most of them have already found new jobs. A good sign that we always had particularly qualified employees in our company.