The massive global effects of the coronavirus pandemic have had an equally seismic impact on the car industry.
Factories have been shuttered around the world, dramatic stock market falls have hit the value of virtually every car firm, vehicle sales have plummeted and most major motorsport events have been cancelled.
This is Autocar’s round-up of how the car world is being impacted. It will be updated regularly with information and links to more in-depth stories.
Tuesday 11 May: UK government sets guidelines for shops to open; Tesla opens California factory despite local orders
● The Department for Business, Energy and Industrial Strategy has published guidance for how businesses can safely resume work during the coronavirus outbreak. The measures include guidelines that shops – including car showrooms – will be required to follow when they are allowed to open. At present, non-essential shops will open in "phases" from 1 June onwards, with car firms expecting to be told of a clearer timeline today.
Before shops can open they will need to have performed an online Health and Safety Executive (HSE) risk assessment and inspection - with random spot checks in the future to ensure they comply. Shops must also follow a series a number of health and safety measures, including the provision of cleaning, handwashing and hygiene procedures, the enforcement of two-metre social distancing where possible, and steps to mitigate any risk of transmission as much as possible.
● Tesla has reopened its Fremont, California factory - in defiance of local regulations. While the state has eased its stay-at-home restrictions to allow manufacturing to resume, officials in Alameda County, where the plant is located, have so far not given permission for it to reopen. That prompted Tesla to file a lawsuit against county officials over the weekend.
Staff have now return to work at the site, with production resuming yesterday (Monday). On Twitter, company boss Elon Musk said: "Tesla is restarting production today against Alameda County rules. I will be on the line with everyone else. If anyone is arrested, I ask that it only be me." Read the full story here.
● McLaren has reopened its factory in Woking, but company boss Mike Flewitt has said that it won't reach previous levels of activity until July. Speaking in an online Financial Times Global Boardroom interview, Flewitt said that 90 of the firm's more than 200 suppliers were forced to close due to coronavirua lockdowns, but all were now preparing to reopen. He added that new social distancing measures meant the plant can't run at "peak" capacity.
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TStag
So how come JLR are still
So how come JLR are still going? Have they just planned better than anyone else? Or are others shutting down because they can't sell the cars they make?
Chris C
TStag wrote:
JLR has announced temporary closures at various sites. Often it can make more sense to slow production line speed to improve quality rather than continue to run flat out and then have days with the plant idle and staff still being paid.
Noting that Toyota is keeping open to produce service parts shows how this is a good time to build up stocks of spares which may be in short supply due to limited capacity fully used for vehicle build.
gavsmit
They've priced themselves out of the market
With constantly increasing prices, and small hatchbacks now costing well into the mid twenty thousands, their collective greed has caused a huge decline in sales that this Coronavirus threat has brought home even quicker.
I suspect, under the smokescreen of finance packages and 'increased safety and tech', that they were hoping to close the gap between ICE cars and EVs by dramatically increasing the prices of ICE cars rather than making EVs cheaper.
Now a lot of people will lose their jobs over this obscene profitering that has completely backfired.
Chris C
Not only but also
I agree that the costs of extra safety and tech have had a disproportionate effect at the bottom end of the market but cars also continue to get bigger and the tanking of £ exchange rates and reduced customer confidence post 2016 must also have an effect.
jagdavey
Which car companies will survive the coronavirus???????
In 2 years time when we've got rid of COVID-19, there will also be fewer car companies around, not all will survive. After the collapse of the worldwide car market, only those that were making money in 2019 will be able to dig into their cash resrves and carry on. So that means the VW group will survive, also BMW & Toyota. The rest are gonna have to rely on Government bail outs or just go bust. Even the future of companies like Mercedes Benz, & Ford will be in doubt. GM will go bankrupt again, JLR become extinct & the French firms Renault & PSA forced into a merger by the French government. Some of the Japanese firms will also be forced into takeovers, Honda being the most venerable.
TStag
jagdavey wrote:
it will just lead to merger mania. I doubt JLR as they are owned by Tata which has a strong balance sheet.
Peter Cavellini
Cheery bye!
well, your a ray of sunshine we all need, aren't you?
jason_recliner
The curse of Brexit strikes
The curse of Brexit strikes again!
scotty5
Thought we'd forgot about Brexit now?
I'll take the bait. But rather than commenting on Brexit directly, I will refer to something remoaners kept saying and that was we're better together. Outside the car industry, remoaners were also citing the lack of war since 1945 as a success story for the EU.
Macron said the other day his country is at war. And in these crazy times just look what effect the EU has had. Zilch, nil, zero. They tried to get member states to act as one but those who once said the UK was crazy to even consider going it alone, couldn't get their own borders up quick enough. The lack of movement between countries is now seen as a good thing!
Such crazy times and who knows what lies ahead, but the whole concept of the EU has been severely damaged by this virus. Individual countries have completely ignored the advice of Brussels. The question isn't which car manufacturers will survive, but will the EU survive?
xxxx
Hindsight
That comment now looks even more pathetic in these difficult times
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