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.
Wednesday 10 June: Vauxhall's Ellesmere Port plant won't reopen until September, Fresh doubts over scrappage scheme, Chinese car sales continue to recover
● Vauxhall’s Ellesmere Port plant won’t reopen until after 1 September due to “the commercial situation” of the Astra model built there, parent company PSA Group has announced. Production was suspended at the site in March.
The PSA Group, Vauxhall’s parent firm, did not offer further explanation in the release, but with European showrooms only just opening after being closed for around two months and demand for new cars set to remain low for the remainder of the year, Vauxhall/Opel is likely facing significantly reduced demand for the family car.
The bulk of PSA’s European plants have reopened, including Vauxhall’s Luton facility where the Vauxhall/Opel Vivaro, Peugeot Expert and Citroen Dispatch are built. With strong demand for the commercial models, PSA will begin a third shift at that site, with staff redeployed from Ellesmere Port to Luton for a temporary period on a voluntary basis.
In a statement, the PSA Group said: “The Company proposal will protect employment and support the ability to respond to significant demand for LCV production with highly trained and skilled workers for the Ellesmere Port site, while demand for Astra is building sufficiently.”
● The UK government is reconsidering plans to introduce a new scrappage scheme to boost car sales, according to the Financial Times. Key government figures have told the newspaper that the scheme is unlikely to go ahead because of concerns if will not stimulate UK production and economic growth in the way hoped. Read the full story here.
● The Chinese car market has continued to recover strongly since the country's coronavirus lockdown was lifted. According to date produced by the China Passenger Car Association (CPCA) overall sales in May were up 1.9% year-on-year, with 1.61 million cars sold. That backs previously research that suggests the Chinese public are increasingly turning to cars because of health concerns about using public transport since Covid-19 emerge.
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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.
peetee
Tata may have a strong
Tata may have a strong balance sheet but that hasn't prevented JLR earning a junk rating. Why hasn't Tata invested in JLR ?
I think it is because for years Tata have milked JLR and the U.K. government and now because in order to survive Tata knows that JLR will need billions to be invested to develop new vehicles.
U.K. government supported JLR financially to develop the Ingenium engine plant, now not needed for Diesel engines, and support for the the announced electric XJ, which if a report I read recently was accurate is not now proceeding.
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?
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