By the second half of June 92% of auto businesses were open

08 July 2020 | David Young

Analysis of new ONS data by Institute of the Motor Industry illustrates determination of sector to get back on its feet, with 19% reporting increase in turnover

The Institute of the Motor Industry (IMI) has analysed the latest ONS data on UK business performance.

Key data

• By the second half of June, 92% of automotive businesses were trading
• 8% of businesses reopened, equating to approximately 7,500 businesses
• 4% (3,300) plan to reopen in the first 2 weeks of July
• 3% of organisations with a workforce of greater than 250 are still temporarily closed compared to 10% of those with a workforce of less than 250
• Approximately 62,000 jobs returned to work from furlough in the second half of June; an additional 19,700 are planned to return in the first 2 weeks of July
• Approximately 219,000 jobs remain on furlough
• 19% of automotive businesses reported an increase in turnover but 60% reported a decrease
• 35% of automotive business said that their cash reserves would last more than 6 months – an increase of 4% since last reporting
• 6.1% said that they either had no cash reserves or less than a month, potentially putting 5,000 businesses at risk

Steve Nash, CEO of the IMI said: "It is tremendously encouraging to see how determined our sector has been in getting back on its feet since the June 1st opening of showrooms. Our previous report showed tentative signs of recovery, but the latest data suggests that automotive businesses really grasped the nettle in the second half of June. Just 8% had not reopened and 62,000 jobs returned to work from furlough. But with only just over a third saying that cash reserves would last for more than 6 months, it's clear that balancing cashflow remains a challenge."

Source: IMI