Car retailers run out of revs
In the past Combined Motor Holdings managed to eke out higher earnings, but this year the economy won
Like most companies in consumer-facing industries, car retailer Combined Motor Holdings (CMH) (https://www.sharenet.co.za/v3/quickshare.php?scode=CMH) probably cannot wait for the sputtering SA economy to turn around.
Since economic growth slowed down, vehicle traders have had to contend with hard-pressed consumers choosing to “trade down” to smaller or secondhand models, or hold off buying altogether.
If the economic downturn drags on for much longer, the implications for consumer companies are dire. Affordability has become an issue as disposable income comes under immense pressure...