Tag: OE business
UK new car sales fell 44.4% in March due to coronavirus
The UK new car market declined -44.4 per cent in March, according to the Society of Motor Manufacturers and Traders (SMMT). 203,370 fewer cars were registered than in March 2019, as showrooms closed in line with government advice to contain the spread of the coronavirus.
Lamborghini producing surgical masks and medical shields
Lamborghini is converting part of its production plant in Sant’Agata Bolognese in order to produce surgical masks and protective medical shields for the Sant’Orsola-Malpighi Hospital in Bologna, which is involved in the fight against the Covid-19 pandemic, in collaboration with the University of Bologna. The Department of Medical and Surgical Sciences will oversee validation testing of the medical devices made by Lamborghini, prior to their delivery to the hospital.
Test World open for indoor testing
Test World reports that it is remaining open to “operate and fulfill a busy schedule of indoor tyre and vehicle testing during the global COVID-19 pandemic”. Writing in an email to customers and contacts published 31 March 2020, company representatives said: “Operating within official health guidance to the strictest degree and treating the health and wellbeing of its staff as the utmost priority, Test World strives to minimise disruption to the industry in these unprecedented times.”
Analysts upgrade Conti despite OEM shutdowns
Financial analysts have upgraded Continental AG shares to buy on the basis that car manufacturer shutdowns will only be a limited measure. Writing in an investors note dated 25 March, Jefferies analysts explained their rationale:
The tyre business is keeping countries rolling
By the time you read this a quarter of the world will be on some kind of lockdown along with virtually every car plant in Europe and many tyre factories. We are in uncharted territory. And, as ETRMA secretary general Fazilet Cinaralp said recently, we have to brace ourselves for “one of the biggest challenges our industry has ever faced”. And yet there have already been numerous examples of endeavour, enterprise and generosity in the face of such adversity.
Ferrari to re-start car manufacturing on 14 April 2020
In a welcome bit of news for the original equipment business, on 27 March Ferrari N.V. announced that it plans to resume production on 14 April 2020.
Michelin temporarily closes some European factories, car tyre demand down 9%
Michelin has confirmed that it has decided to close its tyre production facilities “located in the European countries most affected” countries for at least one week. Tyres & Accessories understands this means Michelin’s factories in Italy (Cuneo and Alessandria), Spain (Lasarte, Vitoria, Aranda de Duero and Valladolid) and France (Cataroux, Les Gravanches, Le Puy-en-Velay, Roanne, Bourges, Montceau, Cholet, La Roche-sur-Yon, Golbey, Avallon, Montagny, Vannes, Joué-Lès-Tours and Troyes
Rolls Royce halts production
Production at Rolls-Royce Motor Car’s Goodwood-based manufacturing plant will be suspended from Monday 23 March for two weeks. According to the company, this suspension will be followed by a pre-planned two-week Easter maintenance shutdown “in order to further secure the health and welfare of the employees of the company”.
Toyota pausing production at European plants
Production at several Toyota factories in Europe has been suspended as a result of the coronavirus and its social and economic impact upon the region, and other facilities will be shuttered by the end of this week. Toyota Motor Europe (TME) says it decided to halt production for a number of reasons linked to the safety and security of its employees and stakeholders. In particular, it has needed to respond to short-term uncertainties in sales, logistics and supply chains resulting from lock-down measures implemented by various national and regional authorities.
Automakers have ‘no alternative but to shutter plants’
Following the news that Volkswagen Group is planning to temporarily suspend production at its European plants due to the deepening impact of the coronavirus (COVID-19) crisis, David Leggett, Automotive Editor at GlobalData, commented:
VW shuttering vehicle production in Europe
With 2019 annual sales of 88.4 billion euros, the Volkswagen Passenger Cars brand’s figures were 4.5 per cent higher than the previous year. As a result, Dr. Herbert Diess, Chairman of the Board of Management of Volkswagen AG described 2019 as “a very successful year for the Volkswagen Group”. However, he went on to describe 2020 as “a very difficult year”:
Fiat Chrysler suspends vehicle production in Europe
Fiat Chrysler Automobiles N.V. is temporarily suspending production across the majority of its European manufacturing plants. The temporary suspension, which runs to 27 March 2020, continues the implementation of a comprehensive set of actions comes in response to “the COVID-19 emergency and enables the Group to effectively respond to the interruption in market demand”.
Peugeot PSA pausing European plants
The PSA group’s Executive Board and crisis unit have stopped vehicle production at its European factories until 27 March 2020. The temporary closure move takes effect between 16 and 19 March, according to the following schedule:
Britain – the home of the Pirelli SUV tyre
The UK is one of Pirelli’s biggest SUV markets and with two UK factories, one in Burton-upon-Trent and one in Carlisle, Pirelli is the only premium tyre manufacturer to produce SUV tyres on UK soil.
Coronavirus threatens Geneva, but Motor Show will go on
The so-called coronavirus (Covid-19) is threatening Europe’s largest motoring events, with some sources suggesting that March’s Geneva Motor Show won’t be able to take place. However, a statement published by Palexpo (the Geneva Motor Show’s organising company) said the show will go on and that the exhibition is taking all recommended steps.