Bankruptcy of car dealers

Hi. I am sorry I have not written much lately. September is the end of our financial year and we are dealing more than usual numbers of Japanese people who want to sell their cars. As I have mentioned a few times here, because of the sudden rise in oil prices and depressed economy, definitely more people are saying “Good-bye” to their cars. It is mainly people who used to own a few cars and decided to reduce their collection. Last week only, we had expensive cars such as Skyline GT-R, Hilux Surf, Peugeot 307, Alphard, Harrier Hybrid and Porsche 911 Carrera. The owners are mostly company executives and the top reason for selling is that a car is not a status symbol any more. I guess the real reasons behind this are the high cost of maintenance and ill financial state of their companies. However, on the other hand, there are less people who want to have a car for a recreational pastime and simply enjoy driving; which is a sad fact to admit for car dealers and a severe reality. We cannot sell cars any more.

Last week in Japan, 2 Nissan car dealers in the Hokuriku area went bankrupt. So did a large BMW dealer in Osaka. They were all well-known dealers in the areas and we did business together directly and indirectly. It was disappointing and shocking for us too. In all the cases, because of a sharp downturn in consumption, their sales of new cars dramatically dropped and they had no choice but declaring bankruptcy.

Around the same time, a big sport car muffler manufacturer in Chiba Prefecture went bankrupt. Lack of numbers of the young generation buying cars caused their low sales and made it impossible for the manufacture to keep going. The company was one of the top in the sport car muffler dealers which sold almost \10,000,000,000 worth of stock 10 years ago. This sort of thing is not something happening on the other side of the world. It shows that selling cars with a top brand name and that surviving in the business is getting harder while the market is downsizing and some new strategies are needed.

More and more people are getting rid of their cars in Japan. The population is decreasing and more fun things than cars, such as mobile phones and computers are invented and capturing young people’s minds. Fortunately because our company, JPC started business by throwing out the existing old business model for car dealers and we are slowly but steadily expanding it not only in Japan but all over the world. But while the whole car market in Japan is shrinking, we cannot feel secure. We do have to keep making an effort in providing new services and developing something extra. We will make our service more convenient and safe for you, so please support us!



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(Editor)
JPC TRADE CO.,LTD.
Kato building 4F, 1-1-2 Furuishiba, Koto-ku, Tokyo
Japan Used Motor Vehicle Exporters Association (JUMVEA)
TEL : +81-3-5245-7731
FAX : +81-3-3643-4955