Two-wheeler trade: there is a risk of bankruptcies

Two-wheeler trade: there is a risk of bankruptcies

From January 1st to May 31st, two-wheeler dealers recorded a drastic decline, with an average decline of 42.5 percent. Ferdinand Fischer, motorcycle dealer and spokesman for the two-wheeler trade, is therefore urgently calling for better support for the continued existence of the industry. "At the moment one has the impression that in Austria there are only tourism, gastronomy, art and agriculture and forestry that are worthy of support. I strongly counter this by saying that the two-wheeler trade is part of the motor vehicle trade, which generates around 45 billion euros in sales per year, generating eleven percent of Austria's GDP and employing around 450,000 people. Given these figures, it is incomprehensible why there are not even substantial discussions with us "In order to save many companies, some of which have existed for decades, from bankruptcy," says Fischer.

Contrary to the government's repeated announcements that a lot of financial support has already been provided, according to the survey, with the exception of Hardship Fund I, companies have so far received either no amounts or only minimal amounts. "In this context, the spirits of the entrepreneurs in this country are becoming more and more heated, and that probably doesn't just apply to the two-wheeler dealers. Because they hear every day how much money has already been paid out, but looking at their empty accounts, they wait in vain for money to come in from the state," complains Fischer.

The demands of the two-wheeler industry

Based on the results of the Austria-wide survey about the economic situation in the industry, Fischer makes the following demands:

• Änderung des Beobachtungszeitraums für die Bestimmung des Prozentsatzes des Fixkostenzuschusses auf die Länge der COVID-19-Maßnahme, so wie es eigentlich von Anfang an geplant war. Durch die nachträgliche Änderung dieses Zeitraums würden viele statt der immer kommunizierten 75 Prozent lediglich 25 Prozent Fixkostenersatz bekommen.
• Verlängerung des Fixkostenzuschusses aufgrund der Saisonalität unserer Branche von sechs auf mindestens neun Monate; kaum eine Branche ist derart betroffen, wie die Zweiradbranche! Wir hätten den Großteil unseres Geschäfts genau in der Zeit der Covid-Sperre und kurz danach machen sollen, was uns aber verunmöglicht wurde.
• Kurzarbeit: Statt von Juni–August, würden wir dringend September bis März 2021 benötigen. Damit wäre uns geholfen, denn das ist die Zeit, wo wir fast keine Geschäfte tätigen können, wir aufgrund der COVID-Sperre keine Polster haben und es daher ums Überleben gehen wird.

Improvement required: Hardship Fund II

According to the survey, the government's aid measures have so far not had as much effect as announced or hoped: "On average, motorcycle and scooter dealers have only received 832 euros. That is less than the famous drop in the ocean. At least the hardship fund I is the aid measure that was promptly paid out. The other measures are miles away from the promised amount and speed and are a bitter disappointment," states Fischer. According to the survey, almost 60 percent of retailers received less than 500 euros as part of the Hardship Fund II and not a single one received more than 2,000 euros. "This confirms the widespread opinion that this measure does not deserve to be called 'help': 26.3 percent had their application rejected outright. Any further comment on this is unnecessary. After all, after the end of the survey, at least some improvements were made to Hardship Fund II," says Fischer.

Corona relief fund

In almost 30 percent, a loan has either already been rejected or there is no longer any chance of being approved for a loan. In almost 30 percent, the loan has already been approved but not yet paid out. This means that around two thirds are now waiting in vain for over two months to receive the promised rapid liquidity support. "We have heard again and again that whoever helps quickly helps twice as much. Unfortunately, practice proves the opposite. Our neighboring countries have shown how it can work: quick à account payments based on the tax account, which are settled later. Why can't we do that in this country," asks Fischer.

Short-time work

According to the study, what stands out when it comes to short-time work is that, at 47.5 percent, almost half of all retailers who submitted their submissions had not yet received a euro by the end of May. This shows that the payouts are not working as promised. "More than two and a half months after the lock-down, that's too long. The member companies are waiting forever for the salaries they had pre-financed to be repaid. For many, this additional liquidity burden will cause serious problems and possibly even the end," warns Fischer.

Future assessment

When assessing the future prospects, the study also shows extremes:

• 21,6 Prozent sind entweder pessimistisch, beurteilen die Lage aussichtslos oder sind bereits im Konkurs
• 36,1 Prozent sind unentschieden, je nachdem welche (nichtrückzahlbaren) Zuwendungen vom Staat noch kommen
• 34 Prozent sind positiv eingestellt
• 8,2 Prozent sehr positiv und meinen, dass sie keine Probleme haben werden

While 40-50 percent of motorcycle and moped dealers have positive prospects for the future, 25-35 percent have reservations, depending on the government support that is still outstanding. However, a good quarter of those surveyed are also facing economic collapse: "20-30 percent of colleagues already have their backs to the wall before winter comes. That's another reason why we hope that the legislature will finally act quickly and help," sums up Fischer.