The rate of business insolvencies for the automotive industry fell from .12% in April 2009 to .08% in April this year, based on the latest Insolvency and Late Payment indices from Experian®, the worldwide information services company.
In addition to witnessing a year-on-year decrease, the automotive industry cut in half the rate of insolvencies registered last month, from .16 down in March to .08 in April 2010.
The financial strength of the automotive industry also witnessed a small improvement year-on-year, rising to 79.67 from 79.35 in April last year.
Payment performance amongst automotive businesses saw a slight improvement from 16.57 in April 2009, dropping to 16.01 in April this year, but the improvement has not been as significant as it has been in prior months leading to motor traders switching from being the 3rd most fastest payers to the 10th.
Mark Nuttall, General Manager of Experian’s Automotive business, stated: “The decline in insolvencies and improvement in payment performance in April has meant that the financial strength score of the industry has remained buoyant this month.”