Car dealerships in Germany will be allowed to resume activities effective immediately, as Chancellor Merkel’s government relaxes its COVID-19 lockdown measures in Europe’s biggest market.
The move has been eagerly anticipated by auto lobby groups, which fired off multiple warnings regarding dealerships facing bankruptcy due to high inventory, as reported by Autonews Europe.
The VDA manufacturers lobby group stated that reopening dealerships is an “important and necessary step,” on the way to ramping up production. “There is no production without sales,” said VDA president Hildegard Mueller.
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While no specific date has been set for when most dealerships will reopen, industry groups expect some showrooms to resume business activities as soon as Monday, something Opel have already confirmed will happen – thus becoming the first German carmaker to do so.
“This is an important step towards normalcy that will slowly bring momentum back into sales,” said Opel CEO Michael Lohscheller.
After a nationwide lockdown was announced on March 16, new-car sales in Germany dropped 38%, forcing the VDIK importers group to withdraw its full-year forecast for 3.35 million new car sales.
Merkel and the country’s 16 state leaders hashed out a plan to open stores with retail spaces of less than 800 square meters (8,611 square feet), which include bike shops and book stores. The 800 square meter restriction will not apply to car showrooms, which have comparatively large areas that can facilitate social distancing measures, as opposed to supermarkets or other shops.
“We are very pleased to see that there has been no restrictions placed on the size of the dealership because that would put certain businesses at a disadvantage,” said the VDA.
