{"id":1192,"date":"2020-06-09T13:04:03","date_gmt":"2020-06-09T12:04:03","guid":{"rendered":"http:\/\/www.amberhill.biz\/blog\/?p=1192"},"modified":"2020-06-09T13:04:03","modified_gmt":"2020-06-09T12:04:03","slug":"automakers-on-limp-mode-automotive-manufacturing-uk-covid-19","status":"publish","type":"post","link":"https:\/\/www.amberhill.biz\/blog\/?p=1192","title":{"rendered":"Automakers on limp mode………#automotive, #manufacturing, #uk, #Covid-19"},"content":{"rendered":"
<\/div>

As the automotive industry limps back to work post Covid-19 the world is a very different place & will stay that way for a long time. The future success of these companies is very dependent on having an adequate electric vehicle proposition as we head towards the next hurdle which is coming up fast – #Brexit & further ahead the abolition of fossil fuels cars in 2035 or even sooner. So what are the implications for manufacturers based in the U.K.<\/p>\n

Aston Martin.<\/strong><\/p>\n

Recently announced redundancy for 25% of its workforce & the replacement of CEO Andy Palmer – the future of Aston depends on the success of its DBX SUV model which is built in South Wales. No electric models on the horizon.<\/p>\n

Benley.<\/strong><\/p>\n

VW owned Bentley has now returned to work at Crewe but is struggling to maintain capacity & is rumoured to be running at @ 50% following the introduction of social distancing measures – consequently Bentley has announced redundancy plans affecting 25% of the workforce. Bentley doesn’t have a fully electric car but intends to develop one by 2025.<\/p>\n

Jaguar Land Rover<\/strong><\/p>\n

JLR has returned to work at Solihull & more recently at Halewood. They have announced today that Castle Bromwich will not re-open until 10th August. \u00a0JLR has one electric vehicle at he moment, the award winning I-Pace but this is built at the Magna plan in Austria. Plans are in place to extend the range & to build these cars at Castle Bromwich. JLR has not announced any post covid redundancies having gone through an extensive restructuring exercise in 2018\/19 but no one would be too surprised if further cutbacks were announced given the company has lost 3 months production & was recently granted a 500 million loan from 3 Chinese banks.<\/p>\n

Nissan<\/strong><\/p>\n

\"\"Nissan recently returned to work at it’s Sunderland Plant following an announcement about a post Covid worldwide restructuring which will see the closure of its Barcelona Plant & commitment to Sunderland as a manufacturing centre for Quashqai & Juke SUV’s & could also produce their Renault counterparts the Kadjar & Capture.<\/p>\n

This was further quantified by a statement a week later that this all depends on their being frictionless trade with Brussels. Given recent developments failure to achieve this by the EEC & the UK government would be tantamount to a suicide pact.<\/p>\n

The other bonus for Nissan is that Sunderland produces 15k of the incredibly successful electric Leafs per year.<\/p>\n

Toyota.<\/strong><\/p>\n

There have been no major announcements from Toyota but they have returned to work in Derbyshire producing a range of hybrid vehicles. Toyota’s strategy is to reduce overall carbon emissions by producing hybrid vehicles rather than full electric vehicles due to the current constraints around battery technology.<\/p>\n

Mini<\/strong><\/p>\n

Have returned to work at Oxford having remodelled processes around social distancing & are producing some Electric Minis as part of the range.<\/p>\n

Lotus\u00a0<\/strong><\/p>\n

\"\"—\u00a0Geely group has invested in Lotus heavily & the company has a tight well targeted product range including the fantastic new all electric hypercar the Evija. The company has also benefited from picking up a number of talented & experienced engineers from JLR.<\/p>\n

Whatever the next few years brings we will be looking at a tighter, leaner UK Automotive industry with some losers & some big winners depending on their ability to meet the challenges of post Covid, Brexit & Electrification.<\/p>\n

chris@amberhill.biz<\/p>\n

www.amberhill.biz<\/a><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n\n\n