The massive global effects of the coronavirus pandemic have had an equally seismic impact on the car industry.
As lockdowns were put in place across the globe to tackle the spread of the virus, production halted as factories were shut, while the closure of dealerships caused new cars sales to plummet. The financial values of every car firm have taken a major hit, while most major motoring and motorsport events have been cancelled.
This is Autocar’s rolling round-up of how the car world is being impacted, and its recovery as lockdown restrictions slowly ease. It will be updated regularly with information and links to more in-depth stories.
Thursday 11 June: Fiat to restart Panda production, Motorsport UK to provide PPE to event organisers
● Fiat is set to resume production of the Panda at its Naples plant in Italy on 16 June - a move that represents a positive sign for car sales in the country. An official for the UILM union said Fiat informed him production could resume at pre-lockdown levels, according to Reuters.
Production of the city car was originally due to restart on 8 June, but was delayed due to weak demand. The union official did hint that, while demand was improving, it was still weak and there could potentially be production stoppages. Fiat Chrysler Automobiles has already resumed production of its commercial vans and Jeep Compass and Renegade models in Europe.
● Motorsport UK, the governing body of the sport in Britain, says that it will provide £50,000 worth of Personal Protective Equipment (PPE) to registered clubs and Rescue and Recovery units to help them meet Covid-19 safety requirments to stage events this year. It is establishing a central PPE procurement channel to assist clubs with further supplies, and will also provide individual pocket hand sanitiser to all officials working at events. Motorsport events will be allowed to resume in the UK from 4 July onwards, although events must be closed to spectators.
● The children of NHS workers will be given the chance to become 'virtual future F1 stars' at this year's British Grand Prix. Motorsport UK has launched an initiative to find children aged from seven to 10 who will be future stars and appear as part of the pre-race anthem ceremony for the 2 August event. Entry details can be found here.
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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.
rickerby
1978 Ford Fiesta 1.3 Ghia
1978 Ford Fiesta 1.3 Ghia listed at £3460 adjusted for inflation that steel wheeled pushrod engined 4 speed car with manual everything and no passive or active safety devices cost £20K. New Fiesta Titanium comes in at about £20K as well. Looks conspicuously good value to me
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?
rickerby
Why do those most clueless
Why do those most clueless always talk with such conviction?
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