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 25 June: Driving lessons to resume in England in July
● Driving lessons will be allowed to resume in England from 4 July onwards, the government has confirmed. Lessons were suspended as part of the coronavirus lockdown measures introduced in March, but there had been growing concern from instructors that no timeline has been outlined for them to return as restrictions were each.
Jacob Rees-Mogg, the leader House of Commons, has said that lessons will be able to resume early next month. The Driver and Vehicle Standards Agency (DVSA) will shortly write to driving instructors to set out plans for how to restart lessons and tests safely.
Rees-Mogg said the government wanted to assist instructors in "a return to life that is as close to normal as possible", and added there would be a "phased approach to resuming practical testing." Scotland, Wales and Northern Ireland set their own rules for driving lessons and tests.
It is unclear exactly what steps might be required to minimise the potential spread of Covid-19 given the need for instructors to be in cars with students. The AA Driving School told the BBC that it had considered the use of plastic screens similar to those used in taxis, but ruled this unsafe in case an instructor needed to intervene with the driving of the vehicle in an emergency.
● The Commission on Climate Change (CCC), an independent government advisory group, has called on the UK government to increase car tax as part of steps to help reduce carbon emissions. The group believes the tax hike should be introduced shortly because the impact will be mitigated by the reduced cost of fuel due to falling demand in the recent lockdown. Read the full story here.
Wednesday 24 June: Fiat Chrysler secures £5.7bn loan
● Fiat Chrysler Automobiles has secured a £5.7bn credit line backed by the Italian government to help it recover from the impact of the coronavirus pandemic. Read the full story 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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