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 18 June: Peugeot treats NHS like friends and family, Ferrari's hometown F1 shakedown
● Car dealerships in Scotland will be allowed to open from 29 June onwards, after first minister Nicola Sturgeon announced plans to ease lockdown restrictons in the country. Showrooms, along with other shops that have outdoor entrances and exits, will be permitted to open as long as they have met new health and safety guidelines.
After dealerships in England and Northern Ireland were allowed to open in early June, Wales is the only region of the UK yet to announce plants to allow showrooms to open. Welsh government offiials have hinted they could announce tomorrow that restrictions could be eased next week.
● Peugeot will extended its 'Pride' friends and family discount scheme to UK National Health Service employees, enabling them to gain discounts on all of the firm's new cars. The discounts are available through Peugeot's online home ordering system.
● Ferrari staged an unusual warm-up for the rescheduled 2020 Formula 1 season, with Charles Leclerc driving the team's latest SF1000 F1 car through the streets of Maranello. The publicity run, staged 110 days after the machine last ran in pre-season testing, was undertaken as a special tribute to Ferrari's hometown.
Leclerc started his run at Ferrari's Officina Classiche. He emerged from the main factory gate, passing in front of the Gestione Sportiva where the F1 team is based, before passing the Maranello Museum and ending his run at Ferrari's Fiorano test track.
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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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