- C​redit: Investopedia

Car c​ompanies that are struggling for survival in 2020

A​ compilation of companies that are currently in, or have been in survival mode during this year.

15w ago
9.8K

A​s if the year of the 2020 hasn't been weird enough already, it also proved to be an incredibly difficult time for the automotive industry as most of us can already gather, with noticeably less global car sales since the arrival of the Coronavirus pandemic. But some manufacturers are continuing to suffer more seriously than others.

1​. Aston Martin Lagonda

A​ston Martin's CFO, Mark Wilson who stepped down from his position | Credit: Yahoo News Malaysia

A​ston Martin's CFO, Mark Wilson who stepped down from his position | Credit: Yahoo News Malaysia

Having already p​lunged into catastrophic losses of over £100 million in 2019, Aston Martin really was at breaking point. But even with being warned of possible disruption from the coronavirus outbreak, the struggles continued to prevail. With China making up a large proportion of Aston Martin's market, car sales falling during the quarantine period within China only worsened the financial situation for the luxury car manufacturer.

And if this news wasn't bad enough - chief financial officer Mark Wilson stepped down in April, amid concerns regarding bankruptcy for the eighth time in the company's 107-year history. It's hard to imagine such an automotive icon being left in the dust to such an unfortunate series of events, but our best source of hope in seeing the company's comeback will probably lie with the promotion of Aston Martin in the latest delayed James Bond film.

2​. NIO

N​IO ES8 SUV catches alight amid faulty battery recall period | Credit: TechNode

N​IO ES8 SUV catches alight amid faulty battery recall period | Credit: TechNode

A​nother statistical victim of the Coronavirus crisis, Chinese automaker NIO has had a turbulent time recently, with a fluctuating presence on the stock market. A company that originates from the epicentre of where the pandemic began, it could be argued that 2020 held a wealth of difficulty for the all-electric car company - factors such as price subsidies being reduced by the Chinese government for the purchase of electric cars deterred buyers and therefore reduced sales.

N​IO did make a slight crawl back into the game with the debut of the more reasonably priced and more affordable ES8 - but battery fires specific to the model would mean that NIO would have to recall almost 5,000 ES8's, consequently driving sales further into the ground. Any chance of a bounce back would still mean that NIO would be in constant contention with its main rival Tesla, which continues to dominate the electric car market globally.

3. J​aguar Land Rover

S​tock build-up of JLR models as a result of falling sales in China | Credit: Wall Street Journal

S​tock build-up of JLR models as a result of falling sales in China | Credit: Wall Street Journal

Jaguar Land Rover has been subject to tough times as the company continues to adapt its market strategy - losing 3.6 billion pounds in the 2019 financial year. But w​ith its new strategy of cost-saving, JLR has shown signs of both growth and difficulty in recent years - but UK-specific lockdowns have resulted in major repercussions for the household name in the automotive industry, since the firm has its most predominant presence in the UK. The analysis firm Fitch has previously predicted that JLR sales will fall by 15-20% this year as a result of the pandemic – putting more pressure on the need for collaborative development and external investment to keep the company alive.

T​he best window of opportunity for JLR to really flourish in the coming years may be to continue to aim towards full or at least partial electrification of their current range. This could position the company ahead of the game, especially if proposals for a ban on the sale of new petrol and diesel cars in the UK is given the go-ahead. Who knows, the cost-cutting and affordability appeal intertwined with an all-electric range could set JLR up for future success.

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Comments (12)

  • I keep seeing adverts on social media to buy shares in Jaguar Land Rover. I keep thinking bit risky, I love the brand but i think i'll keep away from the shares. That said, I could also have the body of a pro athlete in a week and earn 10 million working for just one hour a day at home.

      3 months ago
  • Sad but I just don't like the look of the current offerings, DB9 was the modern peak for me 😢

      3 months ago
    • I agree, it’s a disappointing thing to see happen to such a previously great brand ☹️

        3 months ago
  • If I were to design the next Range Rover , I’d set it up so that it was simpler and cheaper.

    It would have simple Range Rover Classic mechanicals, a Range River Classic body, about 90 BHP, achieved by de tuning a Holden 3.8 litre V6 , coupled to a Holden six speed manual with 2 overdrive ratios for the highway, and all the seats would be pneumatic air ride .

    It would have 14 “ pressed steel rims with 80 profile balloon tyres , and would have drum brakes all round with leaf springs at the rear.

    The headlights would be $20 sealed beam dual filament .

    There would be no computers at all .

    Safety features would include brakes, a steering wheel , and good all round visibility without the distractions of in car entertainment.

    The dash board would be minimalist , like on an old mini .

      3 months ago
  • Land Rover reliability is their main concern so steep depreciation and they only seem concerned with the American market, also too big for our roads and parking spaces, no longer all British in production or ownership 😢

    Think the mini base defender proposal could be the only thing to slow their slow decline 😢

      3 months ago
    • I agree on most things but depreciation? Have you seen the price of used Defenders? Its one of the best cars on the planet for holding its value.

        3 months ago
    • Except old model Defenders, but they are a unique classic that are infinitely repairable!

        3 months ago
  • Not Aston😢😢😢😢

      3 months ago
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