Car dealerships struggle to survive

Vehicle dealership firm Combined Motor Holdings, CMH, has closed down five dealerships and combined five into one in an effort to cut costs as higher interest rates hit sales growth.

Vehicle dealership firm Combined Motor Holdings, CMH, has closed down five dealerships and combined five into one in an effort to cut costs as higher interest rates hit sales growth.

"Interest rates is a key driver for our business. We closed down five small motor retail operations because smaller operations are very difficult to run in this environment," said CMH chief executive Jebb McIntosh yesterday.

He said he expected CMH competitors to begin closing down dealerships soon, especially in the used car market. He singled out French car maker Renault, whose sales dropped from 1500 units in the past 18 months to just over 300 units. - I-Net Bridge

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