Demand for Bilia’s products and services are influenced by fluctuations in the business cycle and the Car Business is the part of the operations that are influenced most by changes in the business cycle. In a recession, some customers can postpone or refrain the car purchase. Factors that are significant include, among others, interest rate levels, the labor market situation, stock market, opportunities for customers to obtain financing and fuel prices. Reduced demand for cars may also affect the value of cars in inventory and cars sold with guaranteed residual values. Also events such as wars, pandemics and natural disasters can have significant direct or indirect consequences for Bilia’s market and turnover, such as government lock down and product shortage.
OPPORTUNITIES AND MANAGEMENT
The Service and Fuel Businesses are less impacted by changes in the business cycle since cars require service, repairs and fuel regardless of the state of the economy. Sales of used cars are less affected by changes in the business cycle as customers choose a used car over a new car in these situations. However, a deep recession could also affect the Service Business and sales of used cars. Events such as wars, pandemics and natural disasters are managed in line with government rules and recommendations, the aim being to continue with business as usual as far as possible.