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.
Friday 22 May: SMMT calls for dealerships to re-open to boost economy
● British car retailers are “ready to get back to business” and end the £61 million daily cost to the Treasury of keeping dealerships closed, says the Society of Motor Manufacturers and Traders (SMMT).
The UK industry body claims the daily cost is through lost tax income, with automotive retail contributing £36bn a year to the Treasury, and the cost of furloughing the retail sector’s 590,000 employees. It calls for the country’s 4,900-strong network of new car showrooms to be reopened “as a matter of urgency” to allow the market to restart and provide a boost to the economy.
SMMT chief Mike Hawes said “Government measures to support the critical automotive industry during the crisis have provided an essential lifeline, and the sector is now ready to return to work to help the UK rebuild.
“Car showrooms, just like garden centres, are spacious and can accommodate social distancing easily, making them some of the UK’s safest retail premises. Allowing dealers to get back to business will help stimulate consumer confidence and unlock recovery of the wider industry, boosting tax revenue and reducing the burden on government spending”
Earlier this month the British government tentatively gave a date of 1 June for showrooms to re-open as part of the next phase of easing lockdown restrictions. However, this has yet to be confirmed, and depends on the progress of the pandemic.
The SMMT has partnered with the National Franchised Retailers Association (NFDA) to publish best practice guidance for showrooms to ensure social distancing and a safe buying process.
Thursday 21 May: Jaguar Land Rover completes first models under new social distancing measures, PSA Group launches new anti-bac air con service
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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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