Poland: New-car Dealers Going out of Business

Selling new cars in Poland is no longer a worthwhile business endeavour, with the number of local showrooms down by 20% in 2005 alone, according to Rzeczpospolita today.

„The industry is struggling financially,” said  Marek Konieczny of the Polish Automotive Industry Chamber PIM, blaming sagging demand and rising dealership costs for the situation.

However, industry pundits say there are no reasons to panic, because the falling number of retail outlets will not lead to higher car prices and repair bills. There is still plenty of competition in the industry, and if the current trend continues local buyers will have to travel longer distances to find out what new-car dealers have to offer.

In 2006, each new-car outlet had an average 143 units sold.