THIS IS THE SECTION TITLE.The motorcycle trade is struggling hard
The closure of the shops has not only hit small traders and freelancers such as safety trainers and instructors in the motorcycle sector hard. The motorcycle trade is also struggling hard with the Corona-related failures. Unfortunately, the main business of buying and selling motorcycles in spring coincided with the beginning of the pandemic. It was not until the end of April, from April 20th, that vehicle dealers - and thus also motorcycle dealers - were able to reopen. Of course, under strict health conditions, which strain the carefree of the customers and make strolling through the aisles of the vehicles on display less attractive.
How do dealerships of large companies like BMW AHAG in Coesfeld cope with this? The company consists of buying and selling cars and motorcycles on the one hand, and a workshop for the vehicles on the other. Workshops were basically allowed to remain open despite exposure to Covid 19. But can losses be limited or even absorbed in this way?
How does the motorcycle industry, which lives from the emotions of customers when selling, cope with this situation?
Dr. Wolf Niermann is the managing director of BMW AHAG in Coesfeld. Guido Bakenfelder is at his side as a motorcycle sales advisor. While one looks at the company from above and has to keep an eye on the big picture, the other is in direct contact with customers and feels or misses the emotions that emanate from their customers and that are so important for sales. Both answered our questions.
Dr. Interview with Wolf Niermann, Managing Director of AHAG BMW Coesfeld
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Editorial staff:
Dr. Niermann, how did you experience the development of the Corona crisis?
“Well, in the beginning it was still a distant ghost. I would say that the effects were underestimated. Suddenly the number of infected people also rose in Coesfeld. At some point it was ordered that the sale should be closed. That said, we shut off all sales.
It was under discussion whether motorcycle service is systemically relevant. That was important to keep the workshop going. The garage for cars remained open. We are also servicing some BMW police vehicles. Since the police motorcycle squadron is also equipped with BMW motorcycles, it was ultimately no longer a question of system relevance. At the time of the decision, we also had police vehicles here. In this respect, the motorcycle workshop could also remain open.
In the beginning relatively few took advantage of this. Many thought it was closed. Due to the persistently good weather, however, one or two motorcyclists found their way to us. But it's not like we're running normal operations here at the moment. There is much less to do than usual. "
Editorial staff:
How many employees are affected?
“We have five employees in the motorcycle department. We also had to send employees to short-time work. "
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Editorial staff:
So your employees went into short-time work under the conditions of the corona pandemic. Has there been an increase by the BMW company? Did you get support from the group?
“BMW put together a package for the dealers that came in stages. For example, longer payment terms were granted for the new vehicles delivered, as well as business advice.
But essentially we had to organize everything ourselves, including the hygiene regulations such as keeping your distance, the markings and so on.
BMW is a large corporation, so it takes a little longer for effective measures to arrive. It has to be decided when and how business should start again. It is also about the question of what can be made up at all. "
Editorial staff:
How do you do that? Are you trying to address customers through publications in the media and absorb losses?
“We are primarily on the social networks. The classic print press is no longer so successful. We are also holding back a little with marketing because you don't know whether the next closure is imminent in three or four weeks. Customers are also cautious. We respond with very favorable interest rates, for example when financing the vehicles, and we also work with discounts or bonuses. But everything is not like in normal years. "
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Editor: The peak of motorcycle purchases is actually now, in spring, from February to May. Did you have significant break-ins there?
“You could say that. The question is whether this can be absorbed. It is forecast that we will have another summer like last year. Fear of the virus diminishes somewhat over time and is no longer that great. This holds dangers, but also opportunities. Motorcycling is not in itself a mass event. You sit alone or in pairs on the motorcycle. Sure, the sociability should not be missing. But she is stepping back a little this year. But driving itself is also a lot of fun. We hope that people will decide to buy a new or used motorcycle and switch technology to the newer generation. "
Editorial staff:
I can only wish you that. You told me that the consequences of the corona pandemic will have a negative impact on your interest rate business. Can you explain that to me
“It is of course the case that here in the company we have certain fixed costs that can only be partially offset by short-time work and other measures, but not in total.
A company that is completely or partially closed closes with a negative result. The operation is partly financed by the house bank. With poorer results, one is quickly given a poorer rating at the bank, which leads to interest rate increases.
The banks have also announced this, which ultimately leads to poorer results again. One would like to see more concession from the banks, and more help too. The approval process for the KFW loan is also taking much longer than promised at the beginning of the Corona period. We see that the banks' risk assessment is no different than usual. "
Editorial staff:
I have another question about financial aid. Everyone is talking about stimulus packages. Today (Red. 23.4.2020) another package was launched and presented in the media. Did you get this help?
“We have not yet used any of the aid programs. We applied for a KFW loan through our house bank because we see the long-term effects. We don't think the crisis will be over in two months or by the end of the year. We see long-term consequences. In this respect, we want to secure ourselves with appropriate loans. So far, however, not a single euro has flowed in aid. We are still afloat, but we would be happy to see any acceleration. "
Editorial staff:
The numbers and the development have a direct impact on your employees. How did you take the situation?
“We are fortunate that we consider all employees as a large team. Similarly, the employees see themselves as part of the team. We said that we would solve all of this in solidarity. We don't do short-time work for a few, we take turns.
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The effects should remain tolerable for everyone and everyone should be affected similarly or equally. That means that we have also taken up the team idea here. People have moved closer together. Of course, this also causes stress in the beginning. Rent and other costs continue to run. If you haven't been affected by short-time work before, you don't know what you have in your wallet at the end of the month. Can you still pay the bills? In this respect, there were already stressful situations at the beginning. We tried to cushion that through informational discussions. But there were some personal sensitivities. "
Editorial staff:
MrDr. Niermann, thank you very much for the informative conversation and I hope that everything will ultimately turn out well for your company.
Editorial staff:
Mr. Bakenfelder, you are a motorcycle sales consultant and you are in direct contact with customers who are interested in used or new motorcycles. Have you noticed a change in customer behavior due to the corona pandemic?
Guido Bakenfelder, motorcycle sales advisor
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“Yes, at the beginning. We had a lot of inquiries. Half of those interested have resigned due to the Corona issue. Two self-employed people who wanted to use vehicles for customers in the company had concerns about how things would go with their own shop. Overall, it has become much quieter. "
Editorial staff:
And how did you personally perceive the situation?
“The sale has been closed since Corona became an issue. The entire sales area was cordoned off. We only acted in an advisory capacity, on the phone or by email. It was all very distant. The motorcycle product is sold through “living and touching”. It was all a bit sterile. "
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Editor: The emotions of buying a motorcycle must of course be served. In this context, have you personally suffered losses in relation to your customers?
“Not even break-ins. I met a lot of new people through the internet. The number of inquiries has increased significantly. Little by little, I am now processing the requests. Sales have been open again since this week, so I can show the vehicles to customers. We can again offer more active test drives. There is a little more "steam on the chain" than before. "
Editor: Mr. Bakenfelder, thank you for talking to us. Hopefully the trend will stabilize. That would be very good for you and the team.
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The conversation took place on Thursday, April 23rd, 2020. In this interview, we focused on the motorcycle division of the AHAG BMW company in Coesfeld and were able to appreciate the team spirit that Dr. Niermann was shown to feel on site.
In a very friendly and courteous manner, a conversation was held about a situation that puts considerable strain on the company and its employees. In personal contact, anonymity is lost and opens one's eyes to the real world.
If you want to contact AHAG Coesfeld with a motorcycle request or a repair, here is the contact details:
AHAG BMW Coesfeld
Rekener Strasse 126
48653 Coesfeld
Telephone: 02541-9491-0
Motorcycle sales advisor: Guido Bakenfelder
We would be happy if one or the other finds the way to a conversation with Mr. Bakenfelder. That certainly opens doors and is good for the atmosphere in the company.
Text and pictures: Günter Heumann-Storp