AUS
NZ
UK
CA
USA
IND
Wuhan (China) is a major centre for sourcing key components used in manufacturing sectors around the globe and the city where the outbreak was first identified. The deadly epidemic is causing catastrophic impact on sectors from tourism to technology to aviation. China is an important cog in the wheel when it comes to international trade and the manufacturing sector in the United Kingdom could run out of parts at its factories due to the coronavirus outbreak, as the Chinese suppliers have put a break to most of their supplies.
As the epidemic weighs heavily on international business and trade, Britainâs biggest carmaker, Jaguar Land Rover has warned it could run out of inventory at its British manufacturing facilities. The company can reportedly sustain for this week and the upcoming week only with its parts inventory and has been even reported to have flown car parts in suitcases to the United Kingdom from China. The condition further gets exacerbated as the company has not been recording any sales in one of its most important markets (China). However, the company is looking at some alternative sourcing agreements.
Britainâs largest carmaker, Jaguar Land Rover had planned to cut manufacturing at two of its factories in the United Kingdom, as a part of its strategy to tackle falling demand. Jaguar has reported 2.3 per cent decline in retail sales, due to a tough sales environment in China coupled with falling demand for diesel vehicles across Europe. The Group will try optimising its operations to sustain itself in the market as the external environment stays challenging for the industry. In the latest development, His Royal Highness, Charles, the Prince of Wales, formally opened NAIC (National Automotive Innovation Centre). Jaguar Land Rover demonstrated its latest, next-generation Destination Zero mission based, advanced autonomous research concept vehicle with an aim for a cleaner environment and healthier societies. To tackle societyâs greatest mobility challenges to shape the future of the automotive industry of the UK, these automotive research and development centres are opened. NAIC, the £150 million national centre, is dedicated to advanced design and development and automotive research. The future sustainable mobility solutions, which included the latest electrified and autonomous vehicles, were showcased.
Jaguar Land Rover is not the only auto company getting affected by the Coronavirus outbreak, but various other auto and auto component makers are set to witness the same hazard. Another British carmaker, Fiat Chrysler earlier in February had warned of shutting down its plants in the UK as the deadly epidemic wreaks havoc on global companies. Fiat Chrysler might even consider halting production at one of its four manufacturing plants in the United Kingdom as well. Many global car manufacturers are bearing the brunt of the deadly epidemic. Automotive majors, Peugeot-Citroen and Toyota are yet to assess the impact of the supply chain being affected, but they do not expect to close the plants in the United Kingdom as of now.
Letâs have a look at some auto sector companyâs business and share price performance:
AA PLC
Another United Kingdom based Auto services company, AA PLC (LON: AA.) is into the business of providing roadside assistance and Motor Insurance services. The Roadside Assistance division provides with help to people who are stranded on roads due to automobile breakdown and require mechanical support or emergency services. The Insurance division takes care of underwriting of the motor insurances. In addition, the company also has a driving school.
On 20th February 2020, while writing the shares of AA PLC were trading at GBX 43.56, after closing at GBX 43.82 in the previous session. The shares of AA Plc have fallen 24.44 per cent since January, which could possibly be the impact of the coronavirus outbreak.
The shares of the AA PLC have delivered a negative return of 7.63 per cent in the last quarter. The companyâs shares plunged by 24.64 per cent from the start of the year to till date. The companyâs shares have given investors 53.34 per cent of a negative return in the last year. AA PLCâs shares have a Gross Dividend yield of 4.56 per cent.
Wincanton Plc
The United Kingdom based Industrial Transportation company, Wincanton Plc (LON:WIN) provides Road transportation and Warehousing solutions. The company has its own transport arrangements and cargo services around the world. The company provides rail transport and Inbound Management in the containers division.
On 20th February 2020, while writing, the shares of Wincanton Plc were trading at GBX 277, after closing at GBX 275 in the previous trading session. The shares of Wincanton Plc have fallen 9.24 per cent since January, likely to be impacted by the coronavirus outbreak.
The shares of the Wincanton Plc have delivered a positive return of 6.59 per cent in the last quarter. The companyâs shares plunged by 10.13 per cent from the start of the year to till date. The companyâs shares have given investors 18.53 per cent of a positive return in the last year. Wincanton Plcâs shares have a Gross Dividend yield of 4.07 per cent.
Surface Transforms PLC
The Auto parts company, Surface Transforms PLC (LON:SCE), is a manufacturer of Disk breaks for automobile and aerospace applications, using cutting edge carbon-ceramic technology. The companyâs shares are listed on the AIM segment of the London Stock Exchange. It has its own patented carbon-ceramic material technology and a team of highly qualified scientists and engineers who are continually working on developing new processes for the development of carbon-ceramic materials and innovative products for a variety of applications. The company attaches significant value to research and innovation in material sciences.
On 20th February 2020, while writing the shares of Surface Transforms PLC were trading at GBX 27.50, which remained flat in comparison to yesterdayâs closing price level. The shares of Surface Transforms PLC have fallen 17.02 per cent since January, showing the possible impact of the coronavirus outbreak.
The shares of the Surface Transforms PLC have delivered a positive return of 14.58 per cent in the last quarter. The companyâs shares surged by 17.02 per cent from the start of the year to till date. The Surface Transforms PLCâs shares have given investors 66.67 per cent of a positive return in the last year.Â
Transense Technologies PLC
Another Auto parts company, Transense Technologies PLC (LON:TRT) specialises in electrical switchgear management systems which are used to measure torque, pressure and/or temperature in the passenger car segment.
On 20th February 2020, while writing, the shares of Surface Transforms PLC were trading at GBX 64, after closing at GBX 70 in the previous session. The shares of Surface Transforms PLC have fallen 5.40 per cent since January, which could possibly be impacted by the coronavirus outbreak.
