Association of Authorized Car Dealers and Traders in BiH Seeks Help from Competent Institutions

SARAJEVO, (Patria) - The Association of Authorized Car Dealers and Traders of FBiH, operating within the Chamber of Commerce of FBiH since 2015, has sent an initiative to the Government of FBiH, the Government of RS, and the Coordination Board for Economic Stabilization, seeking support for companies in the automotive industry affected by the coronavirus pandemic.

According to statistical indicators, there are approximately 150 authorized car dealerships in Bosnia and Herzegovina, with an estimated 3,000 regularly employed individuals.

It is estimated that these companies pay approximately 20 million KM monthly in taxes and contributions on salaries in BiH, as announced by the Chamber of Commerce of FBiH.

Currently, due to the new situation, 99% of trained employees are at home, in accordance with the recommendations of the competent authorities due to the state of emergency, with only certain on-call duties organized in some cases. Consequently, revenues from the sale and servicing of vehicles have completely stopped. At the same time, many traders have indebted their companies with commercial banks by investing in showrooms and service centers. The car inventory is partially financed by working capital, but largely through credit or leasing arrangements.

Furthermore, the rent-a-car business is completely handicapped and facing the scenario of returns due to the crisis.

The submitted initiative has two main goals - proposals that would help continue economic activities, with:

1. Urgent reallocation of funds with support for the economy – to retain employees.

2. Enabling the continuation of business, respecting the measures of health and safety professionals through on-call duties, reduced working hours, and working from home in segments where possible.

This initiative focuses on short-term measures, while in the coming period, the Association of Authorized Car Dealers and Traders wants to be a quality dialogue partner for the competent institutions, so that we all feel the consequences as little as possible.