Automakers respond to Coronavirus crisis as production stops while consumer finance risks increase

As Sterling continues its plummet - now reaching a five-month low against the dollar at 1.26 earlier this week - the Bank of England has undertaken measures to keep banks afloat amid the pandemic, slashing its’ bank rate by 50 basis points to 0.25% and reintroducing a scheme enabling banks to borrow at a preferential rate for the next four years. Focusing in on the automotive industry, factories are shutting all over mainland Europe as predicted. Similar shutdowns as previously seen in China are now appearing all over the continent, and the mixture of parts shortages, staff welfare concerns and confirmed cases of the virus are serving to cripple vehicle production.

Automakers respond to Coronavirus crisis as production stops while consumer finance risks increase

Mar 18, 2020

As Sterling continues its plummet - now reaching a five-month low against the dollar at 1.26 earlier this week - the Bank of England has undertaken measures to keep banks afloat amid the pandemic, slashing its’ bank rate by 50 basis points to 0.25% and reintroducing a scheme enabling banks to borrow at a preferential rate for the next four years. Focusing in on the automotive industry, factories are shutting all over mainland Europe as predicted. Similar shutdowns as previously seen in China are now appearing all over the continent, and the mixture of parts shortages, staff welfare concerns and confirmed cases of the virus are serving to cripple vehicle production.

Coronavirus impacts European auto finance industry

European auto lenders no-doubt look with apprehension at news from the global auto manufacturing world as the coronavirus halts production. The Geneva Motor Show marked yet another recent casualty of the COVID-19 crisis, with the organisers making the decision – under instruction from the Swiss Government - to cancel the event at this late stage amid fears of spreading the virus further, instead releasing an informal update video online covering the basic topics.

Coronavirus impacts European auto finance industry

Mar 13, 2020

European auto lenders no-doubt look with apprehension at news from the global auto manufacturing world as the coronavirus halts production. The Geneva Motor Show marked yet another recent casualty of the COVID-19 crisis, with the organisers making the decision – under instruction from the Swiss Government - to cancel the event at this late stage amid fears of spreading the virus further, instead releasing an informal update video online covering the basic topics.

Automotive industry “wasting millions” by working in silos and duplicating investment

Vehicle manufacturers, leasing companies and finance providers will be left behind by new entrants to the market unless they stop operating in silos, automotive industry experts have warned. Executives at specialist automotive consultancy Elevenci believe the sector is in danger of repeating the mistakes of the dot com boom, when work was duplicated and investment wasted as the industry tried to adapt to new technologies. The latest disruption comes from artificial intelligence, electrification and rising demand for subscription services and mobility products.

Automotive industry “wasting millions” by working in silos and duplicating investment

Mar 09, 2020

Vehicle manufacturers, leasing companies and finance providers will be left behind by new entrants to the market unless they stop operating in silos, automotive industry experts have warned. Executives at specialist automotive consultancy Elevenci believe the sector is in danger of repeating the mistakes of the dot com boom, when work was duplicated and investment wasted as the industry tried to adapt to new technologies. The latest disruption comes from artificial intelligence, electrification and rising demand for subscription services and mobility products.

Americas

Brazil targets 2030 petrol and diesel ban

Feb 28, 2020

Brazil has become the latest country to propose a ban on the sale of petrol and diesel cars, with a suggested date of 2030. The country’s Comissão de Constituição e Justiça (Constitution and Justice Commission – CCJ) approved the bill, which is to be voted on by the country’s Comissão de Meio Ambiente (Environment Commission). It states that vehicles powered by biofuels – such as ethanol, which is popular in Brazil – would be exempt from any future bans.

Asia Pacific

Toyota Finance New Zealand partners with Ephesoft on digital transformation initiative

Jan 28, 2020

Toyota Financial Services New Zealand (TFNZ) has partnered with Ephesoft to drive its automotive loan application and settlement processing. TFNZ will use Ephesoft’s Transact software within its loan operations team to automate the classification and processing of key forms and documents. The Transact platform uses artificial intelligence, machine learning and cloud-based services to automate document processing and will integrate with the finance company’s existing loan origination system.