New car sales set to plunge 63% and service stymied

New car sales in Panama could plunge  63% to  17,000 units on the street, representing a decrease compared to those  sold last year, according to industry projections.

“With the pandemic we project a significant reduction in general sales for this year. The projection is that between 16,500 and 17,000 new cars will be sold. Last year there were 47,000 units, ”said Gustavo De Luca, president of the Panama Association of Automobile (ADAP).

The union spokesperson said that the health and economic crisis generated by Covid-19 came at a time when the sector had been cooling for three years.

and the paralysis of sales, but also due to the suspension of its workers.

“The members of the ADAP union  import only new cars that  are 95% of the cars sold in the country-, we estimate that we have 5,000 direct jobs, of those 85% (4,250 ) have suspended contracts) ” 

He described as positive the decision of the Ministry of Health and the Ministry of Commerce and Industries to authorize the reopening of the workshops on May 13, but considers that “the established limitation of 10 employees per workshop or branch makes the provision of services for the majority, unfeasible”.

“Limiting to 10 people regardless of the size of the workshop hinders the ability to offer the service and keep the supply chain running smoothly.”

He says that in the last week there was a lot of demand, but also limitations to serve everyone due to lack of personnel.

Right now we are working at 20% capacity, however, we seek to reach 50%, maintaining hygiene and safety measures within each workshop.