Auto analysts comment on ‘perfect storm’ for car sector
Car industry analysts have outlined the compound challenge facing the UKs car sector following the publication of the Society of Motor Manufacturers and Traders half-year figures. The stats show that the first half of 2020 yielded the lowest level of UK car manufacturing since the 1950s. Edwin Kemp, head of automotive strategy at KPMG, commented that the SMMT’s June 2020 new car manufacturing analysis is a harbinger for businesses’ likely descent into insolvency throughout the automotive supply chain. Peter Barnes, head of automotive at global legal business, DWF, added that the challenges facing the UK automotive industry add up to a perfect storm for the sector.
Continue ReadingUK car production down -42.8%, 11,000 jobs lost in coronavirus crisis
UK car manufacturing output declined -48.2 per cent in June, Society of Motor Manufacturers and Traders figures reveal. Only 56,594 units were produced in the month. The SMMT revealed that the 381,357 cars produced in the first half of 2020 represent the weakest six months of UK manufacturing since 1954. This is -42.8 per cent down on 2019’s first half, with more than 285,000 units fewer produced. 11,349 jobs have been lost across manufacturing and retail during the pandemic. The SMMT warns that the fear of Brexit tariffs could endanger more jobs without dedicated restart support. The society called for greater urgency in talks to secure an ambitious free trade agreement with the European Union. Its latest survey data shows nine in 10 firms are missing clarity of information to allow them to prepare for the end of the transition to the new ongoing relationship between the UK and EU.
Continue ReadingBridgestone raising tyre prices 4 per cent
Bridgestone EMIA (Europe Middle East India and Africa) has announced a price increase of up to 4 per cent.
Continue ReadingMichelin world’s most valuable tyre brand, but Bridgestone well-placed to regain pole
In addition to being the strongest brand globally, according to Brand Finance, Michelin has been named the worlds most valuable tyre brand for the third year in a row. However, the gap between first position and second-placed Bridgestone narrowed, meaning the Japanese tyre manufacturer is well-placed to regain pole.
Continue ReadingMichelin remains world’s strongest tyre brand
Michelin remains the world’s most valuable and strongest tyre brand, according to the latest Brand Finance Automotive Industry report. However, while Michelin has retained its top position for the second year in a row since it gained the crown from Bridgestone in 2018, Chinese tyremaker Linglong Tires cemented its position as an up-and-coming tyre brand by entering the top 10 after a couple of years of being tipped as a fast riser.
Continue ReadingPeak petrol – has UK hit auto landmark unnoticed?
Following the SMMTs June round of car registrations figures, analyst Deloitte wonders if there is cause to think a UK automotive landmark has passed. While much of the focus has been on the historic depths the countrys car sales have hit, the proportional demand for hybrid and electric vehicles has continued to rise at pace. Michael Woodward, UK automotive lead, Deloitte, said: “The automotive industry is taking positive steps towards recovery from the impact of COVID-19. Socially-distanced showrooms have been reopened in England for a full month, and factory production is ramping up again, in some cases faster than expected.
Continue ReadingVan market shrinks -24.8 per cent in June – SMMT
UK new car registrations fell -34.9 per cent in June, according to figures from the Society of Motor Manufacturers and Traders (SMMT) as the market began a tentative restart after more than two months of lockdown. The drop was an improvement on May’s -89.0 per cent wipe-out but, with 145,377 new car registrations, this still represented a significant decline of 78,044 compared with June 2019, as dealerships in Wales and Scotland remained closed for much of the month.
Continue ReadingUK new car market down a third as tentative restart reveals subdued demand
UK new car registrations fell -34.9 per cent in June, according to figures from the Society of Motor Manufacturers and Traders (SMMT) as the market began a tentative restart after more than two months of lockdown. The drop was an improvement on May’s -89.0 per cent wipe-out but, with 145,377 new car registrations, this still represented a significant decline of 78,044 compared with June 2019, as dealerships in Wales and Scotland remained closed for much of the month.
Continue ReadingACEA forecasts record 25% drop in car sales
The European Automobile Manufacturers’ Association (ACEA) predists that the market for cars in Europe will be down a quarter in 2020. The association revised its forecast radically due to the economic challenges the COVID-19 pandemic poses to the auto industry. Around 3 million fewer cars will be sold in 2020 according to the forecast. EU sales numbered 12.8 million in 2019, but are now forecast to be as low as 9.6 million in 2020.
Continue ReadingExtra 1m cars to hit roads in favour of public transport
An extra one million cars could be set to hit UK roads as commuters follow government advice and switch public transport for private vehicles, new research suggests. The study, published by the Active Travel Academy (ATA), concluded restrictions put on the number of passengers that trains and buses can carry due to the coronavirus pandemic would lead to many more commuters using their cars to get to work.
Continue ReadingMotorcycle registrations improve in May, though still 50% down
Motorcycle showrooms had to stay closed in May although workshops could remain open to facilitate repair. As a result, it is remarkable that 5,394 new machines were put on the road in May, the National Motorcycle Dealers Association (NMDA) says. This is about half the number of units registered a year ago when motorcycle dealerships were fully open, and customers were not asked to remain at home.
Continue ReadingUHP tyres one-third of European replacement market by 2024: Astutus
Leading tyre market data analyst Astutus Research has predicted that the European trend for higher performance tyres looks set to continue. The analyst’s report, ‘Future Dynamics of the European PCLT Tire Industry’, published in association with Tyrepress, has been updated for 2019 with an eye to the trends of the next five years. The analyst states: “The movement towards tyres with a higher rim diameter is clear within the European PCLT tyre replacement market. This reflects the trend towards larger tyres on new car models and changes in the composition of the car parc, with a greater share of SUVs. The replacement market reflects the changes in the original equipment segment, albeit with a lag.
Continue ReadingUK car manufacturing faces long wait to return to normal levels – KPMG
While UK car manufacturing is beginning to reopen production lines after producing just 197 units in April, Andrew Burn, partner and head of Automotive at KPMG, said the road ahead is far from clear, despite the UK’s car dealerships being given the green light to open. Export markets, uncertainty about demand, and the challenge of cross-border supply chains all provide significant headwinds for the country’s car makers.
Continue Reading15 commercial vehicles manufactured in April, down -99.3%
Only 15 units ran off UK commercial vehicle (CV) production lines in April, -99.3 down year-on-year.The Society of Motor Manufacturers and Traders’ (SMMT) chief executive, Mike Hawes said that while unsurprising, the figures “illustrate the incredible challenge facing the UK commercial vehicle sector” as a result of the Coronavirus lockdown.
Continue ReadingUK car manufacturing down -99.7% in April
April car production was basically non-existant in the UK. The country’s output for the month was the lowest since the Second World War, down -99.7 per cent, according to Society of Motor Manufacturers and Traders (SMMT) figures. The coronavirus lockdown forced plants to close, meaning just 197 premium, luxury and sports cars left factory gates in the month. These were models that had been assembled prior to shutdowns with only finishing touches needed.
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