How to Navigate Stock Shortages and Be Ready For When Stock Levels Return
Contact Car Benefit Solutions (CBS) to discuss setting up an Employee Car Ownership Scheme (ECOS).Tags: Automotive ECOS
After surviving the impact of the COVID pandemic, the automotive industry is showing signs of returning to some sort of normality. However, the biggest challenge now is the semiconductor and raw material shortage that is affecting most manufacturers in terms of stock availability and lead times for factory orders.
According to The Society of Motor Manufacturers and Traders (SMMT), UK factories made 127,922 engines in July, a decline of -27.5% over the same month in 2020.
Mike Hawes, SMMT Chief Executive, said:
“The decline in engine production in July must be looked at in context against the same month in 2020 which saw production artificially inflated as the sector looked to recover lost units due to the pandemic. It is unsurprising that the number of engines produced so far this year remains below the five-year average with the global shortage of semiconductors continuing to impact the ability of manufacturers to produce vehicles, leading to a fall in demand for engines. Government must show its support for UK Automotive by introducing measures to support production during these COVID-related stoppages and boost industry competitiveness.”
So, in full knowledge that the industry as a whole has a slower stock supply than usual at this time of year, what planning can the automotive industry be considering as we look ahead to Q4 and 2022?
To put your business in an optimum position for when stock levels begin to return to normal, contact Car Benefit Solutions (CBS) to discuss setting up an Employee Car Ownership Scheme (ECOS), which will ensure you are ready for when the time comes.
An ECOS removes Class 1A National Insurance Contributions (NICs) for the employer, providing significant business savings in comparison to traditional company car schemes. It also protects your employees from the rising cost of company car tax.
With a minimal commitment of your time, CBS specialists can optimise your employee car fleet to meet the requirements of your business. CBS has already helped 64 dealer groups save over £20million by implementing ECOS solutions. Find out how by setting up an initial consultation with the CBS team.
Benefits of an ECOS:
- Not subject to Class 1A NICs.
- Reduces write-down costs.
- Allows you to control vehicle choice and eligibility.
- Provides funding options to free up capital and take vehicles off balance sheet.
- Light touch admin.
CBS also understands how much consideration dealers are giving to outgoings at the moment, particularly write-down costs that represent a huge financial burden for dealers. Significant reductions in write-down costs can be achieved by choosing an ECOS, and at the same time employee repayments on the vehicles can be controlled to enhance their benefit at no additional cost to the business.
Why not contact CBS today to find out how to approach your write-down costs from a new angle?