Auto Showrooms Also Wanted COVID-19 Compensation, But Didn’t Get It Business



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Didn’t work during quarantine

Kia Auto, which sells Kia cars, has closed its doors to buyers during the quarantine, like most other showrooms. “We immediately realized that we must close, like other non-food stores, we are retailers”, 15 minutes said Gintaras Kaukėnas, director of Kia Auto.

The company, which sells KIA cars, rents the facility, so when the state promised the company to partially reimburse the rental costs, the dealers were quick to prepare the documents. “We did not work the entire quarantine, only the service worked. We provided all the documents, even the additional ones, when Invega asked us to. But soon we had two surprises,” said the businessman.

Valdo Kopūstas / 15-minute photo / Kia car showroom in Vilnius

Valdo Kopūstas / 15-minute photo / Kia car showroom in Vilnius

Invega, which distributes compensation for rental expenses, responded to the car dealer that they were classified as wholesale according to Statistics Lithuania’s classification, when in fact they were not. “We are not wholesalers, there are no other car showrooms. The wholesalers operate in other countries, we are retailers or distributors, as it is acceptable to call it, ”said G. Kaukėnas.

Another surprise is that car dealers find today that during the quarantine they may not have closed their showrooms and continue to operate, despite the fact that at that time it was clearly stated that the non-food trade was in principle prohibited. “We look stupid,” said G. Kaukėnas angrily.

Invega: We are reviewing the list

The Statistics Department’s ranking on support margins also eliminated Lithuanian clothing manufacturers who rent shops. Invega also refused to reimburse them because they were among the producers who were not prohibited from working during the quarantine.

After the 15-minute post on Wednesday, the government decided that producers are also entitled to rent compensation.

“We also tried to convince Invega that we were not wholesalers, we could not even become one, but they were not taken into account,” said the head of Kia Auto. Invega responded that according to the Statistics Department, the main activity of the company was the wholesale of automobiles, which was not restricted by quarantine.

Asta Slapšienė, Marketing Director, Invega 15 minutes He repeated the same, following the classification of economic activities, which qualifies the company as a wholesaler. It is true that there may be changes.

“The list is currently under review, so if it is decided to expand it or choose another criteria to determine that a particular activity has been banned or restricted, then the applications can be further evaluated,” he said.

Suspect trying to save

The Lithuanian Automobile Employers Association has tried to convince the Government that it is not correct to regard new car dealers as wholesalers, and Invega is simply misleading.

“No branch registered in Lithuania has the right granted by the manufacturer to engage in the wholesale of vehicles”, 15 minutes said Petras Ignotas, a member of the association’s board of directors.

“We understand that they have many applications, they cannot cope, they delve into each letter. But it is necessary to distinguish where the retailer is and where the wholesaler is, and change the classification ”, he is convinced.

Irmanto Gelūno / 15min nuotr./Petras Ignotas

Irmanto Gelūno / 15min nuotr./Petras Ignotas

According to him, some of the car show rooms are rented, some have their own, but all were closed during the quarantine because that was an order from the Government. “Now it appears that the state has inflated such a big bubble that everyone will be supported and compensated, but it really gives the impression that Invega has been told to save,” Ignot said.



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