Factoring as an Integral Part of Operational and Strategic Controlling

The automobile trade is subject to a strong concentration process, where the profit margins are low whereas the requirements by the manufacturer, market and customers are high. To survive, extreme cost discipline and a healthy financing structure are required. Factoring in combination with a powerful operative and strategic controlling are decisive factors. Lean processes and optimal use of personnel costs have led to a positive result. Dealer surveys with a qualified questionnaire on the use of controlling in the company and the organizational structure served as a basis. In addition, the dealer management report for Volkswagen Germany was used to compare the individual personal assessment of the company with the results of the nationwide dealers depending on their size. The earnings situation of the dealers is very tense, especially in new car sales, due to low margins and a strong margin reduction in competition. Factoring can be used to relax the financial situation and avoid liquidity bottlenecks.