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News

Weak electric car sales force car dealership into insolvency
Preckel Automobile, a German car dealership group, has filed for insolvency as weak electric vehicle sales have seriously undermined its business, leaving around 500 jobs at risk. The company is closing three branches in Düsseldorf, Solingen, and Heiligenhaus as part of cost-cutting measures, though other locations will continue operating for the time being. 

The insolvency proceedings were initiated at the Krefeld District Court under a preliminary self-administration process. A major factor in the downturn is that demand for electric cars has fallen well below expectations due to high purchase costs, uncertain resale values and insufficient charging infrastructure, while manufacturers focus on high-priced models that struggle to attract buyers.

The case highlights a growing crisis within the European automotive retail sector as traditional dealers struggle to balance the management of stagnant EV inventory and rising operational costs. 

Reported here at Blackout News
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