July/August 2020

42 AFTERMARKET JULY/AUGUST 2020 BUSINESS www.aftermarketonline.net C oronavirus continued to have a huge effect on the sector in June, as garages continued to reopen, while also dealing with a whole host of new rules, and challenges too. There has been both bad news and good news as everyone attempted to find the new normal. 19 May: IGA urges Transport Minister to end MOT extension Higher traffic levels and a growing backlog of faulty cars on the roads has prompted the IGA to urge Transport Minister Grant Shapps to end the MOT extension as soon as possible. The IGA wrote to the Secretary of State for Transport, encouraging a swift end to the six-month extension put in place on 30 March. IGA Chief Executive Stuart James said: “With approximately one third of cars failing their initial MOT, millions of faults will be left unrectified if the full six-month extension goes ahead. Stopping the MOT extension without delay will ensure that many more cars are roadworthy, and another major step will be taken in helping the UK economy recover.” 21 May: IMI urges Apprenticeship Levy clawback pause With 91% of larger employers in the sector being forced to change their apprentices training plans as a result of COVID-19, the IMI wrote to government to suggest that the usual practice of taking back unused Apprentice Levy funding be suspended until 2022. In a letter written to Gillian Keegan, MP, Parliamentary Under-Secretary of State for Apprenticeships & Skills, IMI CEO Steve Nash requested that the current clawback applied to unused Apprenticeship Levy funds is halted for a two-year period. Among the ongoing findings of an ongoing IMI survey, it was revealed that 26% of automotive retail CORONAVIRUS ROUND-UP The ongoing impact of COVID-19 went on making waves across our sector, as well as the world at large employers have said they are unlikely to employ any apprentices in 2020. Meanwhile 40% are looking to reduce or even abandon apprentice recruitment for the rest of this year. Only 9% say their apprentice recruitment plans are unchanged. 22 May: MAHLE adjusts to new normal MAHLE Aftermarket UK said it was adjusting to the new normal to support its wide customer base of distributors and independent garages. Jonathan Walker, MAHLE Aftermarket Managing Director commented: “The MAHLE Aftermarket UK team have performed admirably adjusting to the new normal and we are working around the clock to support customers’ changing requirements.” 25 May: Retail reopening announced Car usage was expected to continue to increase when the further easing of lockdown restrictions came into play during June, meaning garages could see demand for their services increase from that point. At the daily Downing Street Press Conference on 25 May, Prime Minister Boris Johnson unveiled plans for allowing non-essential shops to reopen from Monday 15 June. He did advice that the proposed easing was “contingent on progress in the fight against coronavirus,” and that businesses that did reopen as a result would need to follow government guidelines to protect customers and staff alike. Reopening the UK’s general retail sector will mean more car journeys by consumers, and with the government urging workers to eschew public transport where possible, more shop staff too. 26 May: Mini-lockdowns next challenge for garages? Highly-localised mini-lockdowns are likely to be deployed in COVID-19 hotspots as the nationwide lockdown is gradually rolled back, the government warned, meaning garages could find themselves within one if Coronavirus begins to spread in their area.