Plummeting car sales in recent months has resulted in a thriving network of dealerships in Palma.
Palma.—The car industry on Majorca, a spokesman explained yesterday, has been buying and selling dealerships in Palma and changing the names of management companies in order to open up sales channels. The move has enabled operators to maximise the use of installations which specialise as workshops, administrative centres and sales points.

Car companies had been quick to see that sales were plummeting after the end of government subsidies to purchasers which had been introduced to move the stockpile of vehicles in dealership showrooms, so consolidation of premises had become a priority.

However, the move has been less evident in outlying areas of Palma where car sales showrooms operate as single units and where managers are more likely to adopt policies of cost cutting through reducing their staff.

Back in the capital the Grupo Roxa has acquired BMW and Mini Rex Motor dealerships, adding to its already-existing control of Isleña de Motores (Opel), Blau Motors (Seat), Awauto (Wolkswagen and Audi), Cormotor (Opel) and Autos Mistalia (Skoda).

Entrepreneurs in the car industry in Palma are not discounting furthering their distribution operations despite the current economic climate.
The spokesman confirmed that it is the networking that has been the key to the survival of Palma dealerships and lone operators are going to have tremendous difficulty riding out the slump.

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