Dealers keep NHS and key workers mobile in the lockdown

These are extraordinary times.  First and foremost here at Motor Trader we extend our support to all individuals and families, employees and companies impacted by COVID-19 and our thanks to the key workers and emergency services and their huge efforts to slow and control the spread of the virus.

In the April  Motor Trader we look at how dealer bosses have responded to the lockdown. Their priority was to keep customers and employees safe but car retailers are also keeping key workers and emergency services on the road with aftersales servicing and parts supply.

Retailers are playing their part in the community with the offer of free cars and services. Many dealer group bosses have taken a hit on pay to show some solidarity with workers on furlough or on four-day weeks.

Carmakers have also been playing a big role. While manufacturing plants across Europe are temporarily shut they have used their production and logistical expertise to help combat COVID-19.

Ford, Rolls-Royce and McLaren are among the consortium of companies engaged in building ventilators for hospitals while car production is at a standstill.

Dealers have been quick to praise carmakers that have put in place measures to get then through the lockdown. A good example is Suzuki, which introduced measures to aid cashflow with an automatic 60-day extension to any new units coming to the end of the consignment period. It pledged 28 day extended payment on parts orders, and 30 days extended payment on direct sales.

And of course suppliers have done their bit to keep dealers in business during April, cutting their fees and offering services that enable dealers to make greater use of digital channels and platforms.

For many groups, cash flow is a major problem. Dealers have been trying to access funds from Government to get them through the next few months. It has been a very slow, stop-start process.

In the meantime trade bodies and motor accountancy and legal firms are doing their best to help with up to date information on their websites.

Once the transmission of the virus is under control the next stage is to see how the UK is going to emerge from this crisis. Dealers will have to wait and see what the government exit strategy is. In the meantime, keep safe.