Demand for Bilia’s products and services are influenced by fluctuations in the business cycle. The Car Business is the part of the operations that are influenced most by changes in the business cycle. In a recession, some customers choose to postpone or cancel their car purchase. Events, such as natural disasters and pandemics, can have significant consequences for car manufacturers’ production and thus Bilia’s access to products. Reduced demand for cars may also affect the value of cars in stock and cars sold with guaranteed residual values.
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 an used car over a new car in these situations. However, a deep recession could also affects the Service Business and sales of used cars. Bilia continuously work close to the general agents to understand the market development in order to identify activities to secure sustainable sales and profitability.