Automotive

A cyclical industry

The automotive industry consist primarily of auto dealers, auto importers, leasing companies and related business areas. In 2008 the industry consisted of approx. 7,800 companies, which is roughly the same number as in 2000. However, the period from 2000 to 2008 has offered major fluctuations in the number of companies. For example, 2003 had nearly 5% fewer companies than in 2000, while 2007 almost 9% more companies than in 2000.¹

The financial crisis brought a decrease in turnover 
The automotive industry is a very cyclical industry, and auto sales are a good indicator of household spending. From 2000 the industry has grown during good economic times but has experienced a huge slump caused by the crisis. From 2000 to 2007, the industry's turnover increased by as much as 57% from just over DKK 100 bn. to DKK 160 bn.

The automotive industry experienced a significant drop in turnover after the crisis began in 2008/2009. As such, auto trade turnover fell by 10% from 2007 to 2008², and the industry sales alone dropped by more than 30% from 2007 to 2009. As such, sales are back on par with 2002.³

The drop in turnover was across the industry, but a decline in auto sales was particularly noticable. As such, auto sales turnover fell 12% from 2007 to 2008, while auto workshops’ turnover in the same period fell by only 3.9%.⁴

Employment has risen
In 2008 the automotive industry employed approx. 45,000 full time employees, which was an increase of over 3,000 people compared to 2000.⁵ However, the impact of the crisis for the industry stands more clearly when considering the number of full-time employees, which increased continuously over the whole period from 2003 to 2008.

In total the automotive industry employed in 2009 approx. 49,000 employees, representing a decrease of approx. 4,000 people since 2008. That is, the total employment in the automotive sector has dropped by 7.6%.⁶

¹ Statistikbanken, GF2. 
² Statistikbanken, GF2 (current prices). 
³ Statistikbanken, FIKS1 (current prices). 
⁴ Statistikbanken, GF2 (current prices). 
⁵ Statistikbanken, GF2. 
⁶ Statistikbanken, ART1.

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