The tyre business along with the rest of the automotive industry was hit hard by the effects of coronavirus. This tag brings you the latest news as it happens.
A 2021 edition of the Geneva International Motor Show (GIMS) is “very uncertain” and therefore the next edition is not likely to take place until 2022. The news emerged on 26 May after the Foundation behind GIMS declined financial support from the Canton of Geneva because the rescue package stipulated that the even should plan for a 2021 event.
With coronavirus lockdowns lifting around the world, heightened vigilance in social interactions is likely to continue for some time. One effect of this could be an increased use of private cars, as commuters eschew public transport options to limit their contact with other people. The economic reality of this suggests that those in the financial position to drive are even more likely to do so. And in turn these motorists are more likely to drive cars that require the fitment of larger tyres. In its preparation for the launch of the new Cinturato P7 over the last month, Pirelli commissioned a survey of drivers using 18-inch and above tyre sizes. This highlighted the tendency for increased car use in future – especially while social distancing measures are in place. In China, 68 per cent of respondents said they would use their cars more, in Italy the figure was 31 per cent, and in Germany 20 per cent.
MOT exemption means many cars will not be checked for up to six months and 49 per cent of drivers receiving an MOT extension will go to the end of the period without getting car tested, according to Kwik Fit’s analysis. However, the leading fast-fit chain also reports that the majority of drivers think the MOT extension should be ended now.
The government’s decision to include car showrooms in its first wave of of retail reopenings on 1 June has been welcomed by dealers. Sue Robinson, director of the National Franchised Dealers Association stated: “Following our lobbying efforts where we highlighted it was vital to include dealerships in the first wave of non-essential retail reopening, it is positive that the Prime Minister has confirmed the Government intends to reopen car showrooms from 1 June.
Shanghai tyre and wheel trade show, China International Tire Expo (CITEXPO), has been “postponed until 16-18 August 2021” due to the COVID-19 pandemic. The show – the largest event of its kind in China – will take place at the Shanghai World Expo Exhibition & Convention Center, its venue since 2016. The annual show has a strong emphasis on international business visitors, with representatives of 120 countries attending each year. The announcement confirms our report that there would be no CITExpo in 2020 earlier this month.
The Tyre Recovery Association is urging the Environment Agency to be more vigilant about stockpiling waste tyres. The association is concerned that the current relaxation of stockpile permitting rules could lead to operators storing more waste tyres than they can handle. With recycling gate prices high and cashflow under enormous pressure, the temptation to accept unrealistic collection price offers is great. However, if the collector is unable to process waste tyres as a result, abandoned waste tyre stockpiles could become “an ugly and very expensive problem”, which could prove damaging to the reputation of the tyre business as a whole.
Motorsport UK has detailed its plans for restarting motorsport in its eleven sporting disciplines. UK motorsport is currently suspended until 30 June, though the UK body acknowledges the need to take into account continuing restrictions and social distancing after this date. It has issued guidance to each code about restarting within government and healthcare authority guidelines via separate documents, available on its website.
As evidence mounts that many people intend to avoid public transport in the wake of the Covid-19 crisis, new figures reveal that buying a car instead can be a budget-friendly solution for many. The online car supermarket BuyaCar.co.uk has published a list of ten cars that could cost less to buy, fuel, insure, tax and service than a range of rail season tickets.
Even as automotive manufacturers tentatively restart production lines after the COVID-19 crisis disruptions, the global automotive industry faces a hit to the market that will be greater than in the 2007/8 financial crisis, says GlobalData, a leading data and analytics company.
Global automotive parts supplier WAIglobal UK, based in Bognor Regis, has teamed up with Bognor Motors to offer 100 emergency services workers and NHS staff a free vehicle disinfectant clean, using its new product Steri-7. WAI’s latest product thoroughly disinfects the inside of a vehicle and kills 99.99 per cent of all bacteria, viruses and spores on the surface. Once the inside of the vehicle has been left to dry, a reactive barrier is created on the surface, which will then regenerate to give up to seven days’ added protection.
Schaeffler has postponed the Repxpert Academy LIVE event planned for June 20th at Blackpool & The Fylde College. “The current restrictions on social distancing and mass gatherings mean that we have had to put all Repxpert Academy LIVE events on hold for now, so we are looking at other ways to help garages get ‘back on track’” explained Schaeffler Training Manager, Alistair Mason.
Pirelli & C. S.p.A reported revenues of 1,051.6 million euros in the first quarter of Q1 2020 ended 31 March 2020. This represents a decline of 20 per cent compared to the same period in 2019.
The government has temporarily suspended the wrongful trading rules to ease the pressure on businesses. What do you need to know? Ordinarily, directors may become personally liable for a company’s debts if they allow the business to continue trading in the knowledge that it is unable to meet its debts and liabilities. This is called wrongful trading. However, the coronavirus outbreak has caused unexpected cash flow problems for many.
Formula 1 and Silverstone have reached an agreement in principle for the circuit to host two grands prix behind closed doors this summer. The races will need to get UK government approval to go ahead. In a message distributed on Twitter, Silverstone managing director Stuart Pringle said: “I am delighted to confirm that Silverstone and Formula 1 have reached an agreement in principle to host two races behind closed doors this summer.
The Garage Equipment Association (GEA), Independent Automotive Aftermarket Federation (IAAF), the Institute of the Motor Industry (IMI), the Scottish Motor Trade Association (SMTA) and the Society of Motor Manufacturers and Traders Ltd (SMMT) have published a best practice guide outlining the necessary steps for garages exiting lockdown.
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Pirelli
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CITEXPO
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Pirelli
GEA, IMI, SMMT