Traditional car dealership Preckel in bankruptcy: 500 employees affected!

Traditional car dealership Preckel in bankruptcy: 500 employees affected!

In a worrying turn of events, Preckel Automobile GmbH applied for preliminary self-administration proceedings at the Krefeld District Court on December 6, 2025. New information from Mercury According to this, provisional self-administration was already ordered on November 24, 2025, and Dr. Frank Kebekus was appointed as trustee. The main goal of this procedure is to secure the long-term security of the company, which is affected by a drastic decline in sales and stagnating markets.

Around 500 employees can currently prepare for an uncertain future, as three locations in Düsseldorf, Solingen and Heiligenhaus were closed as of November 30, 2025. The remaining locations in Krefeld, Mönchengladbach and Geldern continue to be operational. Managing director Eva Verena Preckel blames the tense situation in the car trade for the insolvency. The new car market in Germany has now no longer reached its pre-Corona level, which is having a negative impact on sales figures.

The failings of the industry

Another problem that is weighing on the entire industry is the sluggish development of electric vehicles. Despite an increase of 52,425 new registrations of purely battery-electric cars in October 2025, an increase of almost 48 percent compared to the previous year, sales in the lower price segment remain below expectations. The Central Association of the German Motor Vehicle Trade (ZDK) criticizes the registration figures as misleading, as many of the e-cars are self-registered by manufacturers and dealers. These own registrations more than doubled in the first half of 2025.

It is becoming increasingly clear that Preckel Automobile is not the only company struggling with such challenges. An analysis of EY shows that the 19 largest car companies worldwide suffered a decline in sales of 1.1 percent in the second quarter of 2025, while profits fell by a dramatic 55 percent. German companies in particular recorded a 38 percent drop in profits, which is due to a variety of problems, such as weak sales of electric cars and rising transformation costs.

Market insights and outlook

The range of brands that Preckel supports is diverse and ranges from Kia to Nissan to Fiat and more. But even the collaboration with big names like Renault and Dacia ended at the end of 2023 after more than 60 years. In view of the ongoing difficulties in the automotive industry, which, in addition to the switch to electric vehicles, is also struggling with falling demand and uncertain conditions, Preckel Automobile must now examine all restructuring options. This also includes a possible entry by an investor.

The uncertainties in the industry are increasing. The loss of government subsidies for electric cars at the end of 2023 and the hesitant development of the charging infrastructure are putting additional pressure on business. Where will the journey take Preckel Automobile GmbH? The self-administration procedure is intended to help implement the necessary restructuring measures more quickly. With a clear path forward, perhaps something could still move forward, even if the winds in the industry are blowing harshly.