From the BBC:
Car dealership Pendragon has seen its shares slump to their lowest level in nearly 11 years.
Shares in the group – which owns brands including Evans Halshaw and Stratstone – plunged as much as 33% this morning, but are now down 15.10% at 5.13p.
The reason? It posted an annual loss and warned the coronavirus outbreak is set to see customers stay away from showrooms.
Pendragon swung to an upre-tax loss of £16.4m in 2019, against profits of £47.8m the previous year.
It said: “As the virus spreads across the UK, then this will likely influence the willingness of customers to visit our dealerships, which could affect our financial performance.”
and
Rolls-Royce Motor Cars has suspended production at the company’s Goodwood-based manufacturing plant from Monday 23 March for two weeks.
The company said: “In order to further secure the health and welfare of the employees of the company this suspension will be followed by an already-planned two-week Easter maintenance shutdown.
“This action has not been taken lightly, but the health and well-being of our exceptional workforce is first and foremost in our minds,” said boss Torsten Müller-Ötvös.
https://www.bbc.co.uk/news/live/business-51905659
It is a tough time for both manufacturers and car dealers at the moment, notwithstanding the effects of Coronavirus.
Will they either work harder for our custom (i.e. more discounts/offers) to stimulate business or will they batten down the hatches and put prices up so that each vehicle makes more profit? It is a fine line in business between the two and if they get it wrong……………….
Dave