Another bankruptcy in Upper Austria – this time in the automotive industry. Seifried United Auto GmbH is a traditional dealer, the boss is a leading official at the Chamber of Commerce. In addition to a failed expansion, the decline in sales of electric cars is said to be partly responsible for the problems. The operation must continue.
The Credit Protection Association 1870 reported this on Tuesday evening Seifried United Auto GmbH from Grieskirchen has filed for restructuring proceedings at the Wels Regional Court. The director is Adolf Seifried, chairman of the motor trade department of the Upper Austrian Chamber of Commerce.
Nine employees – five employees, four employees – are affected by the bankruptcy. 50 creditors have claims amounting to approximately 3.2 million euros.
20 percent offered
According to KSV 1870, this amounts to approximately 1.4 million euros in assets. Creditors are offered a two-year restructuring plan with a 20 percent quota. According to the filing, the business – sales of new and used cars and a workshop – will continue.
Reduced interest in electric cars
According to information from the manager, the reasons for the bankruptcy are mainly due to a costly expansion of Wels, which has now been closed again. According to the bankruptcy filing, the decline in the initially high demand for electric cars is also a reason for the financial situation, and customer refusal to purchase is generally a problem. Higher wage and energy costs are also mentioned.
“According to the information in the bankruptcy filing, the 20 percent quota should be generated by the continuation,” explains Petra Wögerbauer, head of the KSV-1870 location in Linz.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
