Coronavirus

Coronavirus slashes UK car output as industry warns of big hit

By Costas Pitas

LONDON, April 30 (Reuters) – The British car industry faces losing output worth more than 8 billion pounds ($10 billion) due to the coronavirus outbreak, which cut production in March by a third, falling to its lowest level since 2009, an industry body said on Thursday.

The sector, Britain’s biggest exporter of goods which employs more than 800,000 people, saw factories and dealerships begin to close from mid March with only some having set reopening dates for May.

Automakers around the world have warned of the scale of the challenge affecting manufacturers already struggling to deal with tougher emissions rules, the hit to diesel sales and the cost of electrification and autonomous technology.

In Britain, volumes fell by an annual 37.6% to 78,767 vehicles in March and the sector, which made 1.3 million cars last year, faces a loss of more than 250,000 cars and vans, the

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BMW Joins Car Peers With Warning of Coronavirus Profit Slump

(Bloomberg) — BMW AG lowered its profit outlook for the year and warned it will have difficulty generating cash as the German carmaker said the fallout from the coronavirus pandemic is lasting longer than expected.

BMW now sees an earnings before interest and taxes margin for the automotive segment of between 0% and 3%, from 2% to 4% earlier. The company no longer expects to achieve positive free cash flow from car sales this year, Chief Financial Officer Nicolas Peter said Wednesday.

BMW is bracing for tough times after carmakers from Ford Motor Co. to Daimler AG forecast falling profit in the past days because of the pandemic. The crisis is hitting BMW and its peers at a sensitive time — manufacturers are ramping up spending on electric vehicles to meet tougher emissions regulations and need profits from conventional cars to fund those investments.

“The situation remains serious,” Chief Executive

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