Assessing the Financial Impact of Corona Virus on the UK Automotive Industry

Assessing the Financial
Impact of Corona Virus
on the UK Automotive
Industry

Contents
INTRODUCTION.....................................................................................................................................3
Identification of a specific researchable topic area..................................................................................3
Importance of the problem.......................................................................................................................3
Research Aim..........................................................................................................................................4
Research Objectives................................................................................................................................4
Research Questions.................................................................................................................................4
Literature Review......................................................................................................................................4
To analyze the financial impact of corona virus on automotive industry in UK......................................4
To recognize the issues faced by automotive industry due to COVID 19 pandemic................................6
To determine possible solution to overcome from challenges faced by automotive industries................8
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................11

INTRODUCTION
The automotive industry is one of the most important sectors for the country as it
contributes to its overall economic development. But the recent outbreak of the corona virus has
impacted the automotive industry of the country in an adverse manner. This is because all
organizations across various industries had to close their factories and dealerships from the mid
of March with only some of them reopening in the month of May (Abodunrin, Oloye and
Adesola, 2020). The automotive industry is one of the industries that have been affected the most
as a result of the pandemic. There was a significant decrease in the production of vehicles in the
month of March. And in order to get the process of vehicle product to normal would require a
considerable amount of time. All the organizations operating within the industry will have to
follow all the safety measures when they resume their business processes. The automotive
industry of the United Kingdom has hit the lowest level since the financial crisis after the one in
the year 1984. The report is based on assessing the financial impact of corona virus on the
automotive industry of United Kingdom. It also identifies issues faced by the industry as a result
of the pandemic as well as a solution to overcome these challenges.
Identification of a specific researchable topic area
The primary reason behind selecting this particular topic is that the outbreak of the
corona virus has not only impacted the retail industry and hospitality industry, but also the
automotive industry in a negative way. Also, not many researches or studies have been
conducted to analyze the financial impact that the corona virus has had on the automotive
industry. Also, since the impact of corona virus on different industries is one of the most
discussed topics today, it is important to research about this topic. Therefore, the research will
help in building an understanding of the same in an effective manner.
Importance of the problem
The outbreak of corona virus has resulted into a considerable amount of decline in the
number of vehicle production within the automotive industry. The research will help in
identifying the impact of corona virus on the automotive industry and solution for the same
(Anari and et. al., 2020). There is a need to research about the problem in order to obtain relevant
data as well as information about the same. This will further help in making informed decisions

and implementing the right strategies so that they can be implemented if a similar situation arises
in the future.
Research Aim
“To assess the financial impact of corona virus on the UK automotive industry.”
Research Objectives
 To analyze the financial impact of corona virus on automotive industry in UK.
 To recognize issues faced by automotive industry due to
COVID 19 pandemic.
 To determine possible solution to overcome from challenges
faced by automotive industries.
Research Questions
 What is the financial impact of corona virus on automotive industry in UK?
 What are the issues faced by automotive industry due to
COVID 19 pandemic?
 What is the possible solution to overcome from challenges
faced by automotive industries?
Literature Review
To analyze the financial impact of corona virus on automotive industry in UK
The United Kingdom is considered to have one of the most productive automobile
industries in the European Union. The outbreak of corona virus has caused a widespread concern
not only for the consumers, but the manufacturer within the automotive industry as well. This
has also resulted into an impact on the overall supply chain of organizations that operate within
the automotive industry. The production of vehicles has shut down due to which the overall
financial condition has also been impacted (Barabari and Moharamzadeh, 2020). The pandemic
has posed a lot of financial challenges for the industry and it is being anticipated that it would
require a considerable amount of time for the companies to get back to their normal functioning.
March is among the busiest months for companies in a year. The automotive industry within the
United Kingdom has been one of the most affected industries with the number of new car
registrations falling by 44% (How coronavirus is impacting sales & marketing in the automotive