Preckel Automobile, a car dealership, is facing a major insolvency with concrete consequences. Three locations are closing permanently, and around 500 jobs are considered to be at immediate risk. The affected branches are in Düsseldorf, Solingen, and Heiligenhaus. This development is not an isolated incident but rather illustrates the structural crisis in the automotive retail sector. The sluggish sales of electric vehicles, in particular, have significantly weakened the company’s financial foundation. (merkur: 09.12.25)
Insolvency as a major setback for the Preckel Automobile car dealership
Preckel Automobile filed for preliminary self-administration proceedings at the Krefeld District Court. The court confirmed this step and appointed a trustee, while the management remains operational. The closure of three locations is intended to immediately reduce fixed costs and is considered unavoidable.
With its withdrawal from Düsseldorf, Solingen, and Heiligenhaus, the car dealership is losing significant market share in economically strong regions. For many employees, this means the end of their career prospects with the company. While the locations in Krefeld, Mönchengladbach, and Geldern will continue operations, their future also depends on sustainable market development. The insolvency thus represents a profound blow to the automotive business.
Electric Cars as a Key Stress Factor
One of the main causes of the company’s crisis lies in the weak sales of electric cars. Demand for electric vehicles fell significantly short of expectations, despite government and manufacturers promoting a rapid market breakthrough. Many customers are hesitant because high purchase costs, uncertain residual values, and inadequate charging infrastructure are hindering buying decisions.
Added to this is a structural supply problem. Manufacturers are primarily focusing on high-priced models, while affordable vehicles in the volume segment are lacking. For a car dealership like Preckel Automobile, this creates a sales gap that is difficult to fill. Buyer interest remains subdued, while at the same time high holding and financing costs are incurred.
Car Dealerships Caught Between Registration Figures and Reality
Official statistics report rising registrations of electric vehicles. However, these figures present a distorted picture of the market situation. A significant portion is accounted for by self-registrations from manufacturers and dealers. These vehicles appear in the statistics without actually finding a buyer.
For car dealerships, this practice represents an additional burden. Vehicles tie up capital, occupy space, and increase operating costs. Instead of generating liquidity, the financial pressure intensifies. For a car dealership with multiple branches, these effects have a particularly strong impact and accelerate its financial difficulties.
Self-Administration as a Limited Attempt at Stability
Self-administration provides Preckel Automobile with short-term room for maneuver. Restructuring experts are supporting the self-administration process, while government guarantees safeguard the incomes of the remaining employees. At the same time, management is exploring an investor process to secure capital and a strategic perspective.
Simultaneously, the closure of three locations reduces the cost base but comes at the cost of a loss of market power. Without a noticeable increase in demand for electric vehicles, the recovery remains uncertain. Traditional car dealerships are also currently not providing sufficient impetus to close this gap.
Car Dealerships Under Structural Pressure to Adapt
The case of Preckel Automobile exemplifies an industry in flux. Insolvencies are on the rise because margins are shrinking and political frameworks are making planning difficult. The elimination of previous funding instruments has further intensified the pressure, while new concepts have so far failed to produce measurable results.
For many companies, the question now is whether a realignment will succeed or locations will disappear permanently. The insolvency of Preckel Automobile, the closure of three branches and the endangerment of 500 jobs clearly demonstrate how much the weak demand for electric cars has destabilized the vehicle trade.