Automotive Sector

Every Automotive business is different, however there are certain common issues , which are unique to the sector. Issues that we see regularly, do you recognise them?

Inventory Management: Supply chain disruptions, like chip shortages, make it difficult to maintain stock, while excess inventory ties up capital and risks depreciation.
Changing Consumer Preferences: The shift to electric vehicles and online dealerships to adapt inventory, train staff on new tech, and offer digital services can be difficult.
Cost Control and Low Margins: Thin profit margins in new car sales and high operating costs mean dealerships rely on financing and service revenue to stay afloat.
Regulatory Compliance: Environmental and consumer protection laws demand careful management of inventory and financing practices to avoid penalties. Note the recent case of hidden commissions for arranging finance.
Economic and Market Volatility: Interest rate changes and economic downturns impact consumer demand, requiring dealerships to carefully manage cash flow.
Intense Competition: Price pressure, customer retention, and the rise of online-only competitors force dealerships to improve customer service and loyalty efforts.
Used Car Market: Accurate appraisals and reliable supply sources are crucial but challenging, especially with fluctuating used car prices.

As expert turnaround practitioners, our specialists can help tackle these issues with you to get your transport business back on track. We can go through all the available options, like expert assessment of the issues your company faces, improving financial reporting, obtaining long term HMRC Time to Pay deals, building powerful and creative company voluntary arrangements to get costs own (like no cost redundancies and exiting property leases) and because we are also licensed insolvency practitioners we can run sales of businesses through pre-pack administrations. Or close them down through creditors voluntary liquidation if the company/business is no longer viable or if you have had enough.

The most important thing for you to do is to get together with KSA transport experts early, so we can take you through all the above options free of charge. We will then set out a written report telling you the best strategy. KSA will help YOU restructure YOUR business. Having first worked with haulage companies way back in 1996 we know a thing or two about turning them around and restructuring debts.

You may be concerned that entering a CVA means losing your vehicle operator’s licence but usually, since ownership is not changing hands, you won’t lose the licence and you don’t need to apply for a new one. If pre-pack administration is an option, it’s a little more difficult as ownership does switch over. The licence will become void so the new buyer ought to apply for a license 8-12 weeks before the sale. Administrators can contact the Traffic Commissioner and request permission to continue operating vehicles, but this can be very complex process so seek legal advice.

Call us on 0800 9700539 for free expert advice and a talk through your options. We can visit you onsite to discuss your specific situation. We will always set out plans to AVOID formal insolvency action if possible.

KSA has extensive turnaround experience with haulage and logistics firms such as car transporters, waste recovery and distribution, Heathrow logistics /national distribution companies (see “Circle Express CVA” online for example), outsourced supermarket transport companies, one man haulage firms, general large haulage and we even made important case law in one case – see Thomas v Ken Thomas case online

If you have cashflow worries, you should call Keith Steven for an initial chat on 0800 9700539, or call Gary Weber if you are based in the south east on 07739 325008

If you are based in Scotland, northern Ireland or the north west of England please call our turnaround manager Derek Robinson on 07540 432112