Covid - Current landscape release 19

landscape car

As the first stage on the roadmap to returning from lockdown 3.0 did not change the restrictions placed on the sector, it is probably not surprising that outcomes of the business impact analysis show that there has been little change since last reporting. However, there some signs of some very small green shoots recovery:

  • There has been a reduction in the proportion of automotive businesses trading which are reporting a decrease in turnover from 52% to 46%. Also, the proportion that reported their turnover had decreased by more than 50% has also fallen from 12% to 10%.
  • The proportion of those who said that their cash reserves would last more than 6 months has increased from 37% to 41%.
  • 2% of automotive businesses stated that they are at severe risk of insolvency; this has decreased by 2% since last reporting. 13% stated that they had low or no confidence that their business will survive the next 3 months; this is a decrease of 5% since last reporting, indicating more confidence in a bounce back.
  • Since the beginning of November, the proportions of those on furlough has been increasing in line with the tightening of restrictions across the UK. The numbers on furlough are at similar levels to July 2020, but are significantly lower than at the peak of lockdown 1.0.
  • The numbers returning to their usual place of work has increased by 5% in the last reporting and currently 46% of the sectors work force is back in their usual place of work.
  • The proportions of businesses outlining that they are likely to make redundancies in the next 3 months has decreased from 3.2% to 2.1%.
  • 30% of automotive businesses have temporarily closed or paused trading. Unfortunately, it is being reported that 2% of businesses have permanently ceased trading, which is approximately 1,900 establishments. This remains reflective of last reporting.
Release 19