New car market down

The new car market, like other sectors in the country, is taking a major hit as the economy struggles through a two-year-long recession.
Courtesy Garage general manager Nicholas Mackie told BARBADOS BUSINESS AUTHORITY that new car sales for the country’s dealerships were down by nearly half for the last 24 months.
“The demand is still there for new vehicles but at a much lower level.
“The market is normally about 4 800 cars a year but now it is down to about 2 900 for the total market. So it was a tough market for so many dealers to survive. . . .
“The market has shrunk and it is really difficult. That 40 per cent decline on the overall market is over the two years,” Mackie explained.
The company now operates on an adjusted budget since revenues were down compared to the previous year, but Mackie pointed out that Courtesy Garage, a member of the Goddard Enterprises group, continued to do well overall even in the harsh market conditions.
Courtesy Garage was able to pay a bonus to its over 115 staff members last year based on “an adjusted performance”.
Mackie said maintaining employment, protecting the company’s cash reserve and ensuring that the company was not heavily indebted were critical issues management would be focusing on going forward.
“Even though we have a top-line decline in revenue, we had an improvement in income at the bottom. But [it had] a lot to do with cost reductions.”
He said the region was affected similarly, noting that some markets were a little more “volatile” than others.
“Jamaica, for example, has had the currency shifting and interest rates are high.