Scandinavian supplier body, FKG, says the outlook for its members is far brighter compared to six months ago, as Europe’s struggling economy shows signs of fledgling recovery.
There are clearly still peaks and troughs as August data from Spain and France for example, shows sales down 18% and 11% respectively, but the overall mood in the Eurozone is a little more positive, compared to the unremitting gloom of months past.
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“We see light in the tunnel – we are coming back slowly,” FKG CEO, Fredrik Sidahl, told just-auto from the organisation’s headquarters in Gothenburg. “I was quite pessimistic just before the winter – let’s see but it seems very good – Volvo is coming back [for example].
“I don’t think there is one single part [reason] of it. We made efforts to go abroad, to be more international. Another thing is to increase productivity and we can see that in good measurements.
“We are exporting much more than we did five years ago – 18% of complete volume is now going on export volume. When volume comes back, marketing starts coming back, we are in a better position.”
The supplier body chief also pointed to a research programme and tax relief, as boosts, while highlighting a key programme of legislation currently progressing through the Swedish Parliament, targeting late payment.
“We made a great job from the FKG to educate them [politicians] to see what will happen if you advance this law,” said Sidahl. “We never got paid [sometimes] until 120 days after delivery.
“Now the proposal is an invoice has to be paid within 30 days. It will be introduced 1 January, next year. My guess is we will end up something in between [but] it is a great, great, improvement.”
