April 2020

NEWS The UK automotive sector continues to monitor the potential for disruption, as the Coronavirus outbreak continues. With schools closed nationwide, garage businesses across the UK will be balancing the need for staff to take care of children, while also dealing with those who are unwell and the need for disinfecting. As early as mid-March, it was reported that UK ports were experiencing gaps in their schedules, with large container ships from China and the far east not turning up as expected. 40% of goods coming into the UK also arrive by air, often on passenger flights. The almost total shutdown of European air travel will have an impact on the supply of parts as well. On the production side, as we went to press, MINI, Honda and Toyota had either already suspended UK car production or were in the process of doing so. Meanwhile, Jaguar-Land Rover said it was closely monitoring the situation. Manufacturers across Europe and further afield are also enacting factory shutdowns. Looking at the availability of parts at the factor end, A spokesperson for Euro Car Parts said: “To date, we’ve not experienced any issues with stock availability because of the Coronavirus outbreak. We’re aware of the risk of disruption it still poses, and our supply chain team is working on contingency plans and is in regular dialogue with our suppliers to ensure we’re prepared to mitigate against any potential impact.” In his first budget, Chancellor of the Exchequer Rishi Sunak announced a £30bn Coronavirus support package. This was then superseded by a £350 billion stimulus package, made up of £330bn available for business loans and £20bn in other aid. Commenting on the Chancellor’s measures, SMMT Chief Executive Mike Hawes said: “We now seek immediate dialogue with government to agree how such a comprehensive package of measures can ensure business continuity and support for workers. The continued success of this industry is critical not just to the country’s economic performance but also to the hundreds of thousands of people across the country who rely on the sector for their livelihoods.” With the government indicating further measures could be enacted, in a letter to Secretary of State for Business Enterprise and Industrial Strategy Alok Sharma, the NFDA urged support for the automotive aftermarket. “During periods of isolation and lockdown, millions of people will rely on access to safe vehicles to check on vulnerable relatives and deliver essential items,” said NFDA Director Sue Robinson. “It is essential that these vehicles are kept in a safe and roadworthy condition through essential maintenance and repairs, as well as MOT inspections.” Looking at the potential impact on the MOT process, Chris Price, DVSA’s Head of MOT Policy said: “Requirements relating to vehicle use and testing are currently under review in light of the Coronavirus, with further updates to be provided in due course.” With a question mark over new car supply, garages could see a spike in new customers with older cars. Used car website DesperateSeller .co.uk has reported a 18% spike in searches for cars priced under £2,000. The most in-demand models are small cars such as the Ford Fiesta, Vauxhall Corsa and VW Polo. Rod Joseph, director at DesperateSeller .co.uk, said: “People are veering away from public transport in order to better isolate themselves but they also want to support elderly relatives even more than before. Suddenly, getting a cheap runabout with a good reputation for reliability makes a lot of sense.” Advice is being made available across industry. The IGA has issued advice to its members, pointing them towards the latest updates being made available via the government and other organisations including ACAS, while the GEA has also made advice available. 4 AFTERMARKET APRIL 2020 www.aftermarketonline.net UK automotive assesses ongoing Coronavirus impact For more advice on how your garage can deal with the Coronavirus, go to pages 54-55 Top Technician and Top Garage 2020 Due to the ongoing Coronavirus outbreak, the semi finals and finals for Top Technician and Top Garage 2020 are being delayed until later in the year. The Top Technician and Top Garage Awards Evening, which is held in the evening immediately following the finals for both competitions, is now scheduled to take place on 17 October 2020. The online and open question rounds for both competitions will continue as before. Contestants are urged to complete each round as per the deadlines already issued. More details will be released very soon!