7:40 am, April 30, 2020
- Here’s your motoring, business and news round-up for Thursday, April 30
UK car manufacturing down 37 per cent in March
A new stimulus package for the car market is needed as UK car production fell 37.6 per cent in March, says the SMMT.
The manufacturing data comes as Auto Analysis data forecasts the lost value of production if factories remain shut until mid-May will be £8.2bn. Car making was down 47,428 fewer units in March with the first quarter down 13.8 per cent compared to 2019.
SMMT’s Mike Hawes said: ‘We need coordination and collaboration with government. This will include new workplace guidance, additional measures to ease cash-flow and help furloughed colleagues back to work, as well as demand-side measures to help encourage customers back into the market.’
Ford boss’s bizarre rant as Mach-E delayed
Ford boss Jim Hackett warned investors ‘there is no future’ in a bizarre results call where he announced new car models will be delayed and $2bn loss.
The Telegraph reported Jim Hackett’s call took an ‘unreal and eerie’ turn as he made strange philosophical statements. The weird moves didn’t deflect from the fact Ford is facing a potential $5bn loss in the next quarter.
Hackett revealed the company has raised $15bn in loans and $8bn in bonds to boost its balance sheet and said new model launches – including the Mustang Mach-E and F-150 – would be delayed.
Unaccompanied test drives on trade plates
Customers will be allowed to take unaccompanied test drives using a car dealer’s trade plates, the DVLA confirmed last night.
Dealers who hold official trade plates – and are properly insured – will be allowed to let potential buyers out in their cars without having to send a salesman or dealer representative with them when the lockdown lifts. Read the full story here.
Back-to-work German car dealers struggling
German car dealers who went back to work on April 20 are experiencing business at 40 per cent of normal levels.
Car Dealer Magazine has investigated the picture in Germany where dealers were among the first wave of businesses allowed to reopen.
One German dealer said: ‘The whole thing is a catastrophe of indescribable proportions and it will stay that way for a long time. People have other worries than buying cars.’ Read our investigation here.
BMW teases new 4-Series during final testing
BMW has teased pictures of the new 4-Series coupe as it undergoes final testing.
While the final design is being kept under wraps, it appears BMW has resisted the urge to fit the huge kidney grille seen on the Concept 4 unveiled at the Frankfurt motor show last year.
The new 4 Series range will be headed up by an M440i xDrive version, which will have a 380bhp mild-hybrid powertrain combining a straight-six petrol engine with a 48-volt starter motor and battery.
Global carbon emissions see historic declines
Global carbon emissions from energy are expected to fall by almost eight per cent in 2020 in the biggest drop in history as a result of the pandemic.
The International Energy Agency (IEA) predicts a year-on-year reduction of around 2.6bn tonnes of carbon dioxide from energy use including electricity, transport and heating, bringing emissions to levels they were 10 years ago.
US economy shrinks by 4.8 per cent
The US economy shrank by 4.8 per cent in the last quarter as coronavirus began triggering a recession that will end the longest expansion on record.
The Commerce Department estimated on Wednesday that GDP, the total output of goods and services, posted a quarterly drop for the first time in six years.
The drop is a precursor of a far grimmer GDP report to come for the April-June period when a 40 per cent plunge could be reported.
More than 9,000 drivers have 12 or more points
There are more than 9,000 drivers on the roads with 12 or more points – despite that being the number that usually triggers a ban.
Analysis of DVLA figures by Auto Express revealed 9,349 motorists were ‘in possession of both a valid licence and 12 or more penalty points’.
Drivers would usually face an automatic ban of between six months and two years, but can argue that losing their licence would cause ‘exceptional hardship’.
B&Q, Homebase and Wickes reopen more stores
DIY retailers B&Q, Homebase and Wickes have reopened a raft of stores. Hardware stores were named as essential retailers by the government last month, but they still largely shut their doors.
Yesterday, Homebase said it had reopened another 50 sites following a successful trial across 20 stores last week.
KFC to reopen 80 more restaurants
KFC is to reopen 80 more restaurants after the fried chicken chain gradually opened 20 of its sites over the past two weeks for deliveries only.
The move will take the total number of restaurants open to 100. The chain, which has more than 900 sites and employs around 24,000 people, shut all its restaurants last month due to the lockdown.
Government preparing for surge in loan applications
The government is expecting a surge in applications for the new business loan scheme for the smallest companies when it opens on Monday.
Stephen Barclay, chief secretary to the Treasury, told MPs he also expects to see some companies approved for loans under the Coronavirus Business Interruption Loan Scheme switch to the ‘bounce back’ scheme.
The bounce back scheme offers loans of up to £50,000, 100 per cent backed by the government, interest and payment free for the first year. There will be a standardised form to speed up payments.
Wetherspoon’s plans to reopen in June
Wetherspoon’s said it plans to reopen in June as bosses said they hope to benefit from the space offered by its larger pubs.
Social distancing measures will be put in place taking advantage of the space inside and out of the pubs.
Bosses also revealed the business rates holiday had saved the firm £60m and they are looking to apply for a Bank of England loan for large companies.
Half of households ‘expect to struggle with finances ’
Half of households think they will struggle with their financial commitments over the next three months.
Across the UK, 50 per cent of 6,000 households surveyed believe they will find it hard to meet their commitments in the next few months.
Households whose main income is from the ‘gig economy’ are three times more likely to be in serious financial difficulty, according to the Standard Life Foundation. The research estimates that around 28 per cent of households are already experiencing financial difficulties.
Car Dealer Live today: Join us at midday for our chat with Porsche specialists Phil Raby here
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Sources: PA Media, SMMT, Car Dealer Magazine, The Telegraph
