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European Governments must move fast to support auto sector: GlobalData

France recently announced plans to inject more than €8bn into its automotive sector, a measure that Calum MacRae, automotive analyst at GlobalData, believes should be considered across Western Europe. The analyst has forecast that the region will “bear the brunt of a global industry that faces a near 20 per cent fall in volume in 2020 due to the impact of COVID-19.” While it forecasts global industry to lose “nearly 16 million sales in 2020 compared with 2019, West Europe alone will account for more than a quarter of the decline.”

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  1. IGA requests enhanced furlough scheme from chancellor
  2. Car scrappage scheme would quickly benefit UK economy – GlobalData
  3. Auto industry will look to China for rebound insights – GlobalData
  4. Automotive forecasts revised down as crisis deepens – GlobalData
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Business welcomes government decision to reopen car dealerships

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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.

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Related news:

  1. NFDA seeks clarification on Job Retention Scheme
  2. Coronavirus: Larger businesses need protection too, says NFDA
  3. Price, access to charging, range the barriers to electric vehicle purchases – survey
  4. NFDA welcomes EV charging infrastructure investment
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Wrongful trading rules relaxed

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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.

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Related news:

  1. NFDA seeks clarification on Job Retention Scheme
  2. IGA requests enhanced furlough scheme from chancellor
  3. Car scrappage scheme would quickly benefit UK economy – GlobalData
  4. PRA outlines forecourts’ concerns with combustion engine ban
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IGA’s flexible furlough scheme proposal supported by Chancellor

“We welcome the Chancellor’s update and extension to the furlough scheme, which will allow businesses to bring staff back to work on a part-time basis.” said Stuart James, chief executive of the Independent Garage Association (IGA). The IGA wrote to Chancellor of the Exchequer, Rishi Sunak on 29 April, requesting a partial furlough scheme that would allow employees to return to work part-time to support businesses throughout their reopening.

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  4. Roads spending, Brexit caution, business rate relief in spring Budget
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UK government investing billions in road and transport infrastructure

Aerial view of winding roadDeva Darshan; Pexels

Following a budget that committed to the largest portfolio of inward investment in 30 years, on 14 May 2020 the UK Transport Secretary promised £1.7 billion for local road repairs and fast-tracked construction works worth £175 million while fewer passengers are using transport system. Hundreds-of-millions-of-pounds worth of upgrades have already been made to the nation’s road and rail networks during the lockdown period with more planned over the coming weeks and months. For the tyre industry, the new could also support flagging demand for OTR and off-road tyres used in such construction projects.

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  1. Road investment “will support nearly 10,000 jobs”
  2. NTDA to challenge MOT changes on ‘road safety’ grounds
  3. RMI also voices opposition to MOT extension
  4. …But Brake calls for more 20mph zones
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IGA requests enhanced furlough scheme from chancellor

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The Right Honorable Rishi Sunak MPChris McAndrew

The Independent Garage Association (IGA) has requested an enhancement to the furlough scheme. It wrote to the Chancellor of the Exchequer, Rishi Sunak, to request an alteration to the current scheme enabling employees to return to work partially as the country prepares for the next phase of lockdown restrictions.

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  1. IGA launching Covid-19 Compliance scheme for independent garages
  2. IGA works with DfT on MOT fee review
  3. Roads spending, Brexit caution, business rate relief in spring Budget
  4. Trust My Garage Code approval ‘stirs up interest’
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NFDA seeks clarification on Job Retention Scheme

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On 27 March, National Franchised Dealers Association wrote to Kemi Badenoch MP, exchequer secretary to the Treasury, to seek clarifications on the Coronavirus Job Retention Scheme, following the release of further details which have created confusion among employers. “We urge the Government to clarify its guidance on the Job Retention Scheme as the latest information is creating uncertainty in the sector”, said Sue Robinson, director of the NFDA.

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  2. Coronavirus: Larger businesses need protection too, says NFDA
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  4. Price, access to charging, range the barriers to electric vehicle purchases – survey
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Coronavirus: Larger businesses need protection too, says NFDA

The National Franchised Dealers Association (NFDA) has urged the government to support automotive retailers during the coronavirus outbreak and has recommended a range of measures to accomplish this. The organisation, which represents franchised car and commercial vehicle retailers in the UK, also expresses its willingness to discuss the matter further.

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  1. NFDA seeks clarification on Job Retention Scheme
  2. Business welcomes government decision to reopen car dealerships
  3. Satisfaction with manufacturers low in NFDA Dealer Attitude Survey
  4. Automotive retailers ready to welcome customers back
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PRA appeals to government for ATM fee reform

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The PRA has sent the chancellor, Rishi Sunak, and the Right Honourable the Lord Tyrie, chairman of the CMA, the case for government intervention in the reform of unfair changes to ATM usage fees. Many other organisations have also raised their concerns, including the Federation of Small Businesses (FSB), the Association of Convenience Stores, and consumer group Which?

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  2. PRA urges fuel duty cut
  3. PRA, CWA urge crackdown on tax evasion in the hidden economy
  4. IGA requests enhanced furlough scheme from chancellor
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SMMT: Don’t ban hybrids and low emission vehicles

The SMMT released its UK passenger car registration figures for January shortly after the government announced its ambition to end the sale of all vehicles with an internal combustion engine, including HEVs and PHEVs, by 2035. In response to the announcement, the SMMT calls for caution. It points out that hybrids and plug-in hybrids are zero-emission capable, and therefore views both as vehicles not only bringing “significant environmental benefits today,” but also an “important stepping stone in helping motorists make the switch to a zero-emission vehicle.”

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  2. 2014 best year for UK car manufacturing since 2007
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PRA urges Chancellor to cut road fuel tax by 2ppl

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The PRA has written to Sajid Javid MP, the Chancellor of the Exchequer, a case for cutting road fuel duty by 2 pence per litre in the first Budget of the new Government.

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  1. PRA welcomes Budget’s fuel duty freeze, ‘disappointed’ no cut
  2. PRA urges fuel duty cut
  3. Chancellor “is planning tax hike for diesel” says PRA
  4. PRA urges chancellor to continue fuel duty freeze in Budget
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Timetable for petrol, diesel car phase-out an unworkable fantasy, says Klarius

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Klarius Products Ltd. has slammed the government’s proposal to bring forward the ban on new petrol and diesel cars to 2035, calling the decision “an unworkable fantasy” that is more about political gain than solving a problem.

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  1. Petrol and diesel car sales to be banned in the UK from 2040
  2. The clock is ticking for combustion engines and conventional tyres
  3. Backlash against diesels sees new car CO2 emissions rise
  4. Petrol, diesel top next car purchase list – Somo survey
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NFDA welcomes EV charging infrastructure investment

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The Transport Secretary, Grant Shapps, has announced that Government funding for the installation of chargepoints on residential streets next year will be doubled to £10 million. According to the Government, “this could fund up to another 3,600 chargepoints across the country”.

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Related news:

  1. Price, access to charging, range the barriers to electric vehicle purchases – survey
  2. NFDA urges government to enhance alternative fuel vehicle grants
  3. ULEV registrations on the up
  4. NFDA seeks clarification on Job Retention Scheme
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Minimum Wage to increase from April 2020

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Almost 3 million workers in Britain are eligible for increased pay from April, after the UK government said it would increase the official Minimum Wage. The government said the “national living wage” for over 25s would increase from £8.21 an hour to £8.72 from the start of April 2020.

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  1. PRA, CWA urge crackdown on tax evasion in the hidden economy
  2. ‘Increase safety efforts’ IAM tells government
  3. Lack of charge points could hamper electric vehicle growth – RAC Foundation
  4. Car scrappage scheme would quickly benefit UK economy – GlobalData
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CompETe partnership secures multi-million pound award

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Fuchs Lubricants has played a key role in securing a multi-million pound award from the government, as part of a consortium working to create a new lightweight electric drive unit. The Advanced Propulsion Centre (APC) has awarded £25.4m to three leading zero carbon projects in the latest round of Government funding.

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Related news:

  1. RAC launches first mobile electric vehicle charging station
  2. NFDA urges government to enhance alternative fuel vehicle grants
  3. ULEV registrations on the up
  4. Lack of charge points could hamper electric vehicle growth – RAC Foundation
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