UK Carmakers Moving Back to Business as They Plan to Restart Production

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UK Carmakers Moving Back to Business as They Plan to Restart Production

 UK Carmakers Moving Back to Business as They Plan to Restart Production

With the gradual easing of restrictions of lockdown in the country, which is being implemented in a phased manner, some of the industrial activity is getting back on track. It has been recently reported that lenders are beginning to start their mortgage services to support the new homeowners and Remortgage services for home improvement, even though there were issues with the physical investigation of properties. To counter these issues, lenders have eased their norms which has made it easier for potential homeowners to apply and buy properties.

Similarly, some reports have suggested that the manufacturing and automobile industries might also be looking to restart their operations so that they can start getting back on track in terms of their operations and meet their financial goals for the period.

British Automobile Giants such as Tata owned Jaguar Land Rover as well as Aston Martin Lagonda, have shown interest to start their factories and assembly lines with stringent measures for social distancing to be imposed. This new alternative method of operating is extremely important, as these companies need to find new and innovative ways to operate while working amid the threat of Covid-19 disease, which is persisting.

Jaguar Land Rover announced that it is planning to open some of its plants by 18th May 2020, with almost one-fourth of its workforce to start out in a phased manner. The French Car Manufacturer, Vauxhall, previously had also laid out plans to start its operations and recently reported that it would be opening its Ellesmere plant, with social distancing norms in place. The company said that it would appoint an independent body to first audit these measures so that it would be safe for all the employees to operate in such an environment. Aston Martin Lagonda, the British luxury carmaker has said that it is also planning to open one of its factories by 5th May 2020, on plans that would align with Vauxhall’s safety measures. Reportedly, the board members of Aston Martin will take a voluntary 35 per cent pay cut while some of the other executives are also willing to take a 20 per cent pay cut and are being put under the Government’s Job Retention Scheme.

This development follows the report that some automobile companies have started reopening their plants in China, after a quarter of a yearlong halt in all activities, but the situation slowly going back to normal has helped those companies to restart their operations. Some German carmakers, such as the likes of Volkswagen and Mercedes Benz have also resumed part of their operations, in order to make sure that the financial performance of these companies during the year 2020 takes a minimal hit.

The measures that these companies are taking to ensure safety include mandatory wearing of glasses on-site, daily individual supply of masks as well as mandatory physical distancing between each other to avoid contact. The companies have also reported regular sanitisation of all of its premises to maintain cleanliness at all times.

What is interesting to note here that once these companies start operating, it will also benefit the many components supplying companies in the United Kingdom, and the supply chain issues could also be solved, making the overall business environment in the country better than the last few months of covid-19.

These announcements are sure to brighten up the days of the investors of these companies on the London Stock Exchange. The following is a brief comparative performance of some of the top companies in the automobile and parts industry in the United Kingdom on the London Stock Exchange and how these stocks could see a lot of action in the coming days.

AB Dynamics Plc (LON: ABDP) Stock Price Performance

As on 24th April 2020, at the time of the close of the markets, when this report was being written, the AB Dynamics Plc stock was at a price of GBX 1512.50 per stock on the London Stock Exchange market, an increase in the value of 0.83 per cent or GBX 12.50 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 1500.00 per share. AB Dynamics Plc's market capitalisation was estimated to be GBP 337.74 million, with regards to the current market price of the company's stock.

The company’s stock has yielded a positive return of approximately 42.00 per cent in the last one month since March 25, 2020. It has though yielded a negative return of around 32.80 per cent in the last three months since October 25, 2019. The company’s stock price has also given a negative return of approximately 33.40 per cent in the last six months since April 25, 2019.

At the time of writing, the beta of the firm's stock was recorded at a value of 1.53, pointing towards the fact that the movement in company’s share price is more volatile relative to the change in the value of the comparative benchmark index.

Autins Group Plc (LON: AUTG) Stock Price Performance

As on 24th April 2020, at the time of the close of the markets, when this report was being written, the Autins Group Plc stock was at a price of GBX 11.00 per stock on the London Stock Exchange market, no change in the price of the stock, as of the previous trading day. Autins Group Plc's market capitalisation was estimated to be GBP 4.36 million, with regards to the current market price of the company's stock.

The company’s stock has yielded a negative return of approximately 4.30 per cent in the last one month since March 25, 2020. It has also yielded a negative return of around 47.60 per cent in the last three months since October 25, 2019. The company’s stock price has also given a negative return of approximately 46.30 per cent in the last six months since April 25, 2019.

At the time of writing, the beta of the firm's stock was recorded at a value of 1.51, pointing towards the fact that the movement in company’s share price is more volatile relative to the change in the value of the comparative benchmark index.

TI Fluid Systems Plc (LON: TIFS) Stock Price Performance

As on 24th April 2020, at the time of the close of the markets, when this report was being written, the TI Fluid Systems Plc stock was trading at a price of GBX 140.00 per stock on the London Stock Exchange market, no change in the price of the share, as of the previous trading day. TI Fluid Systems Plc's market capitalisation was estimated to be GBP 728.38 million, with regards to the current market price of the company's stock.

The company’s stock has yielded a negative return of approximately 8.90 per cent in the last one month since March 25, 2020. It has also yielded a negative return of around 38.90 per cent in the last three months since October 25, 2019. The company’s stock price has also given a negative return of approximately 23.60 per cent in the last six months since April 25, 2019.

At the time of writing, the beta of the firm's stock was recorded at a value of 1.45, pointing towards the fact that the movement in company’s share price is more volatile relative to the change in the value of the comparative benchmark index.

Aston Martin Lagonda Global Holdings Plc (LON: AML) Stock Price Performance

As on 24th April 2020, at the time of the close of the markets, when this report was being written, the Aston Martin Lagonda Global Holdings Plc stock was at a price of GBX 58.95 per stock on the London Stock Exchange market, an increase in the value of 9.67 per cent or GBX 5.20 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 53.75 per share. Aston Martin Lagonda Global Holdings Plc's market capitalisation was estimated to be GBP 817.01 million, with regards to the current market price of the company's stock.

The company’s stock has yielded a negative return of approximately 15.10 per cent in the last one month since March 25, 2020. It has yielded a negative return of around 56.50 per cent in the last three months since October 25, 2019. The company’s stock price has also given a negative return of approximately 62.80 per cent in the last six months since April 25, 2019.

At the time of writing, the beta of the firm's stock was recorded at a value of 0.39, pointing towards the fact that the movement in company’s share price is less volatile relative to the change in the value of the comparative benchmark index.

Comparative Share Price Chart of ABDP, AUTG, TIFS and AML

(Source: Thomson Reuters) Daily Chart as on 24 – April - 2020, after the closing of the London Stock Exchange Market

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