France on quarantine
At the time of the introduction of quarantine measures (mid-March), the sector of the car service of the fifth republic consisted of about 33,700 enterprises (hereinafter, unless otherwise indicated, ZePros data) of which approximately 21,000 are independent, including network projects, tire centers, body workshops and so on.
We must immediately clarify, the direct ban on the work of a hundred in France was not introduced (it was possible to repair cars, and sell parts, but the sale of vehicles was rigidly limited). But the actions of the government at the very beginning of the realization of antiviral events, according to Nicolas, Zhiro, the Zepros chief, were pretty messy. For example, the list of activities allowed for the period of emergency was published only the day before quarantine.
However, this chaos arose immediately after the first speech of the President of France Emmanuel Macgron, who failed to clearly explain that it was possible and that it was impossible, thereby causing full confusion of both representatives of the professional community and ordinary citizens. The decisions made in different ways were interpreted by official officials, state bodies could not clarify, providing unambiguous information, therefore, for two or three weeks, a real disorder reigned on the market — no one understood anything.
Some independent hundred closed themselves: someone because of the fear of becoming infected and seeking to protect their employees, someone because the client flux came to no (the car owners sat at home). Others continued to function, despite the problems arising. Mainly, these were small, mainly family-run car operators, mainly ensuring the serviceability of special purpose transport: police cars, ambulance, emergency response services, etc. The maintenance of cargo engineering / comment is not closed and the operational delivery of products, medicines, and so on. did not lose its relevance.
Official dealers were different. According to the study of Bodyshop Syndicate Research, during April, only 2% of dealers were completely open and 27% — partially. For comparison in an independent segment, these figures were 51% and 26%, respectively.
But gradually the situation in the market has stabilized, the state gained exhaustive control over it. This is actually the main difference between the French realities from the Russian specifics. Urgently, a private business support package has been formed — really effective measures that can provide real help. The main ones are a free bank loan for one year and the state compensation of wages by staff temporarily left without work.
Without going into details, it is worth noting that as of the beginning of June 350 thousand French companies (not only in the automotive industry) received 57 billion euros of credit money guaranteed. You need to return them during the year, without paying any percent (the interest rate of banks reimburses the state). According to the plan, until the end of the crisis, another 100 billion euros will be sent for these purposes.
According to CNPA (Conseil National Des Professions De L’Automobile is one of the largest industry associations), 70% of the 5000 auto sector companies used this measure of state support. And from 830 SH, the Alliance Automotive Group surveyed, half has already received a loan and another 26% plans to arrange it as quickly as possible.
To compensate for wages, I had to make amendments to the 2011/2013 law. About employment and raise upper compensation bar from 70% to 100%. That is, all people who are temporarily left without work due to quarantine will receive a salary due to them in full for the entire period of disability. The main thing is to make a paper. And here the deep historical proximity of the French and Russian peoples manifested in the lush color, which expressed in, for example, the involuntary abuses, the investigation of which somewhat slowed down the process. It turned out that documents were submitted to compensation, including those who continued to work regularly.
Well, what can be said here — it has long been known that people around the world are the same independently of nationality, and peculiar, call it, the frivolism of the interpretation of legislation is characteristic of certain individuals everywhere. So in this sense, all nations are pretty close. But jokes to the side. We continue.
Tangible assistance to auto repair organizations were provided by sectoral associations. Already mentioned CNPA, as well as FNA and FFC. They not only helped their members to better navigate the decisions made by the Government and correctly arranged documents required for obtaining state support, but also ensured cooperation with banks, insurance and leasing companies, regional authorities, and so on. structures, smoothing the controversial moments and often emerging misunderstanding / disagreement.
Distributors have been tried — 70% of them provided a hundred additional deferments to pay for orders. In addition, many suppliers have begun to ensure their customers with personal protective equipment (masks, respirators, gloves), protective screens from plexiglas for the reception areas and reception racks, antiseptic means for personal use and surface treatment, and social distances markup, etc.
And the IRP AUTO group prepared a special methods containing recommendations for a hundred restoring their
Restart communication with your customers, based on all available communication tools (SMS, email, etc.) to inform them that you are open, even if you did not close. Lost contact must urgently restore — customers will be happy to receive joyful news from you. Feel free to use social networks that are now unprecedented popularity.
Form special shares aimed at checking and restoring the maintenance of the car after a long parking lot. Pay attention to the state of the battery, controls, startup, brake system, tubes, hoses
and other rubber products,
as well as tires. Naturally, the temptation is greatly included in the offer and replace the salon filter, attracting a customer with protection from COVID-19, but here be careful: the most modern so-called «antibacterial» salon filters cope with particles of at least 0.12 μm and therefore do not provide sufficient cleaning subtlety allowing you to fully delay coronavirus.
Offer customers an adequate disinfection service. As China’s experience shows, the demand for disinfection of vehicles after the removal of quarantine increased by 47%! Only choose the right tools to fully. Currently, a lot is talking about ozone disinfection methods that solve problems associated with microbiological pollution of air and surfaces. The operation lasts from 20 to 50 minutes and can be estimated in the amount of 15 € to 30 €. Also relevant steam cleaning at temperatures from 100 ° C to 145 ° C (in combination with detergent), capable of destroying bacteria, whose vitality threshold is 82 ° C.
Connect to state support programs. A free loan, of course, will have to be returned, but the ability to replenish your working capital for a certain period of interest loan can be quite useful.
Also, to replenish working capital, consider the possibility of reverse (or returnable) leasing, having transferred your assets (equipment, special tools, etc.) in a fully or partially leasing company, provided that it will lease these assets.
In the reman.
Maximum limit the movement of employees within the work premises within their authority. Avoid unnecessary contacts of employees with each other. Wash your hands with soap or water-alcohol gel before and after work. Drive the daily book of sanitation of workers and public premises (definitely assigning the responsible) and take the maximum measures of isolation of employees from customers.
It is still difficult to calculate the consequences of the Cake Crisis for the French car repair industry and even more so for the economy of the fifth republic as a whole. But it is already known that the current costs of restraining dissemination of the epidemic of the event and the measures of state support amounted to about 120 billion euros. The economic recession for the first three months of 2020 reached 5.8%, which will increase by about 2.8% at the end of the year. Some reviews say that 21 million jobs are under threat …
However, the mood of experts is more optimistic. One hundred, surely, will be restored much faster than after the crisis of 2008. The fact is that the overwhelming majority of potential customers of the auto repair industry for the period of quarantine restrictions did not incur substantial financial losses. Moreover, sitting at home and getting full salary, they did not just save, they were able to do certain accumulations — in the setting, when all cultural facilities, cafes-restaurants, entertainment and shopping centers, etc., are closed, Nowhere to spend. Therefore, by going to work and returning to a full-fledged life, the car owners will certainly take advantage of the services of auto repair shops, conducting regulatory and repair operations, and thus compensate for all the losses from forced downtime — the deferred demand will work on full. There is no doubt here. For many hundreds, this circumstance, as polls show, even more importantly, rather than business assistance measures provided to the business.
Moreover, as it turned out according to the results of the most fresh professional research, already a month after the cancellation of the total quarantine, the turnover of the auto repair sector reached 84% of the indicators a week before the introduction of restrictions. Moreover, the most remarkable stimulation of the state has made it possible to correct their affairs and the stations, which on the eve of the pandemic breathed, as they say, incense and inevitably closed if not a sudden epidemic and the following state support. However, according to analysts, from 10% to 15% of enterprises will still close in 2020, which will serve as an obvious incentive for the development of the market and competitive struggle. So it is not necessary to despair — the industry only made a short-term stop, and not plunged into recession.