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GB Auto sales slow down due to temporary licencing suspension - Daily News Egypt

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GB Auto sales slow down due to temporary licencing suspension

Company freezes all planned capital expenditures for 2020


Ghabbour Auto’s (GB Auto) sales have slowed down due to the temporary suspension of licencing and registration procedures of new vehicles since 19 March.

After-sales services have also been affected, as consumers have shifted their interest away from nonessential services and goods recently because of the novel coronavirus (Covid-19) outbreak.

On the regional level, the company’s business in Iraq was affected by the curfew imposed in that country in light of the Covid-19.

GB Capital, a financing subsidiary of the company, is expected to extend the repayment period of its loans and other credit products to customers. The move comes following the Financial Regulatory Authority (FRA) and the Central Bank of Egypt (CBE) announcing the postponement of loan instalment payments to banks and financing institutions for a period of six months.

About 31% of GB Lease’s customers and 25% of Drive’s customers inquired about the possibility of loan payment delay.

Meanwhile, GB Auto’s Mashroey and Tasaheel companies for microfinance received limited inquiries about the CBE’s initiative for loan payment delay.

Accordingly, GB Auto has decided to freeze all capital expenditures related to the auto sector planned for 2020, except for the minimum expenses of necessary maintenance only. The company also began implementing a strict cost-cutting programme in April.

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https://dailyfeed.dailynewsegypt.com/2020/04/08/gb-auto-sales-slow-down-due-to-temporary-licencing-suspension/
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