The automotive industry saw the rate of insolvencies increase from August to September, according to the latest Insolvency Index from Experian, the global information services company.
The business insolvency rate for the automotive industry (the percentage of total automotive businesses in Great Britain that failed) had reached 0.09% in August, the lowest rate since January 2008. However, in September the rate rose again to 0.12% – the same level as in September 2008.
The total number of insolvencies increased by 35.5% from August to September (up from 31 to 42) and by 5% from September last year (up from 40 to 42).
The health of the automotive industry, as measured by Experian’s financial strength score which predicts the likelihood of a business failing in the next 12 month, improved from 79.32 in September 2008 to 79.58 in September this year.
Mark Nuttall, general manager of Experian’s Automotive business, said: "The insolvency rate for the automotive industry did rise from August to September, but it is important to take a look at the wider view.
"Despite a few odd peaks throughout 2009 so far, the overall insolvency rate is reasonably stable. This is particularly evident when you compare this year to 2008, when the rate of insolvency in the automotive industry was particularly volatile."