7:22 am, May 15, 2020
- Here’s your motoring, business and news round-up for Friday, May 15
Schools should be allowed to make up own minds on returning
Leaders of local authorities and unions chiefs have accused ministers of going too fast on its plans to reopen schools as soon as next month.
The Local Government Association has said schools should be allowed to make their own decisions about reopening, after the PM said Reception, Y1 and Y6 pupils could go back in June.
Councillor Judith Blake, chairwoman of the LGA’s children and young people board, said parents were ‘anxious’ about sending their children back to school and said more needed to be done to reassure families.
Used car prices begin to fall
The used car market has moved considerably this week with data volumes rising by more than 70 per cent with CAP HPI now confident it can start to move some values once again.
Used car sale volumes have risen by 70 per cent as auctions reopen and the trade begins to slowly get back to work in preparation for the potential start of business on June 1 in England.
CAP HPI says a two to five per cent fall in prices has been seen in cars older than five years – but added it still won’t be moving the prices of newer used cars yet. Full story here.
Nissan may make Renault models at Sunderland
Nissan is considering moving the manufacture of two Renault models from Spain to the UK, according to reports.
The Japanese carmaker is mulling moving production of the Kadjar and Captur SUVs to Britain, allowing it to close its Barcelona factory, the Financial Times reported.
Renault owns just over 40 per cent of Nissan’s shares, and the two companies operate a strategic alliance of their respective production facilities. Full story here.
Transport for London bailout agreed
Transport for London has been given a bailout to help it fill a coronavirus-related black hole in its budget after its income slumped by 90 per cent.
The government bailout, reported to be worth £1.6bn, will come with caveats, including a rise in tube and bus fares, a source confirmed to the PA news agency.
A mayoral source said: ‘The government has belatedly agreed financial support for TfL to deal with Covid-19 – as they have for every other train and bus operator in the country – but they have forced ordinary Londoners to pay a very heavy price for doing the right thing.’
British Airways pushes ahead with 12,000 job cuts
British Airways’ owner has confirmed 12,000 job cuts at the airline will still go ahead despite the government extending its furlough scheme until October.
IAG chief executive Willie Walsh told MPs on Monday, that he was not ‘picking on’ British Airways. Instead explaining the timing of the decision was due to the UK’s labour laws, which mean staff must be given a 45-day consultation period ahead of redundancies.
But Walsh’s IAG, which also owns airlines including Iberia and Aer Lingus, said on Wednesday the consultation will continue, after he was asked to put it on hold.
Honda to resume car production next month
Honda is to restart production next month in the latest move by motor manufacturers to resume work.
The company announced it had told employees and suppliers that it intends to commence production operations at its plant in Swindon from June 1.
Ford has said it plans to restart production at a number of factories, including two in the UK, Jaguar Land Rover will begin work again from Monday, while Aston Martin has also started a phased return to work at its St Athan plant.
Half of people plan to use public transport less
Public transport use could be half normal levels following the easing of lockdown measures, with many people turning to their cars instead.
The government has encouraged people not to use public transport if possible to help limit the spread of Covid-19. In a new survey of 3,000 people, about 50 per cent said lockdown had made them less likely to use public transport in the future.
The survey, commissioned by YourParkingSpace, found less than three per cent of respondents expected their public transport use to increase. There is hope in the motor trade this could lead to demand for cars.
Ducati creates new range of electric bikes
Ducati has released a new series of e-bikes and electric scooters to help with zero-emissions urban mobility.
They consist of four electric scooters and three folding e-bikes using Ducati, Ducati Corse and Ducati Scrambler influences.
The motors powering the scooters range from 250W to 500W, while the e-bikes get a 250W motor.
44 per cent of firms do not have enough cash to last six months
Around 44 per cent of firms have said they do not have enough cash in the bank to last longer than six months.
The Office for National Statistics’ latest business impact of coronavirus survey also revealed that 22 per cent of companies halted trading over the two weeks between April 20 and May 3.
Meanwhile, six per cent of companies who said they were trading during the period said they had restarted operations following a pause after the lockdown.
Mortgage arrears numbers creep up amid early impact of Covid-19
The number of mortgages in arrears crept up during the first three months of 2020 amid early signs of the impact Covid-19 is having on personal finances.
Some 72,380 homeowner mortgages were in arrears of 2.5 per cent or more of the outstanding balance in the first quarter of 2020, up from 70,880 in the fourth quarter of 2019, figures from UK Finance show.
In the buy-to-let sector, there were 4,420 mortgages in arrears, up slightly from 4,390 the previous quarter. Mortgage arrears levels for both homeowners and landlords were lower when compared with the first quarter of 2019, though.
Tech company to create 70m face masks for NHS
A technology company in North Lanarkshire is to make 70m face masks for health and care workers.
Honeywell has agreed a contract with the government to manufacture the personal protective equipment at its site in Newhouse, creating around 450 jobs.
Changes to its production lines mean the company will now be able to create 4.5m masks a month. They will be produced over a 19-month period beginning in early July.
MPs say UK’s biggest pub landlord must give tenants rent holidays
The UK’s biggest pub landlord must give tenants rent holidays to avoid wide-scale closures once lockdown is lifted, according to MPs.
Politicians have written to the chief executive of Ei Pubs, which is part of Stonegate’s 4,500 pubs across the country, demanding he follow the lead of rivals including Adnams and Admiral Taverns which have announced rent-free periods.
The letter from 60 MPs comes as Stonegate said it has launched a multi-million support package for publicans, including a three-month rent credit – meaning rent will still be paid, but credit against future beer purchases will be handed out.
FTSE tumbles over fears of long-term economic turmoil
London markets tumbled heavily as warnings from economists over the long-term impact of the coronavirus crisis weighed on trading yesterday.
European stocks were also shaken by increased worries over the state of US-China trade tensions. President Donald Trump continued to stoke the fires of a feud with Beijing, as he stated he was ‘very disappointed in China’.
The FTSE 100 closed 162.51 points lower at 5,741.54p at the end of trading.
Car Dealer Live today: Paul Stokes from GForces gives his top tips on online car sales at midday today
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