SPECIALISTS RECOVER FROM COVID

Historic vehicle industry buoyant from online orders

Worries that historic vehicle businesses could be adversely affected by cessation of furlough payments have proved to be unfounded, according to specialists contacted by Classic Car Weekly.

The coronavirus job retention scheme, which was introduced on 12 May, was extended until the end of October, with furloughed staff continuing to receive 80 per cent of their usual wages.

The government has currently funded more than 268,000 Bounce Back Loans worth £8.3 billion and 36,000 loans worth more than £6 billion through the Coronavirus Business Interruption Loan Scheme.

Despite these cash injections, the UK slipped into recession (defined as two consecutive quarters of economic decline) on 12 August but representatives say that lockdown preparations have hardened the historic vehicle industry.

Association of Heritage Engineers (AoHE) chairman, Dominic Taylor-Lane, said that its members were ‘cautiously optimistic’ about the rest of the year: ‘Businesses are adapting where they can; while no business is spending non-essentially – they are retaining staff and carrying on with work.

‘The pandemic has put everybody who is prepared to adapt in a stronger position for when things eventually recover. Some businesses have done better than others. ‘Tools and parts suppliers are absolutely flying thanks to lockdown projects being undertaken by people stuck at home. Some motor sport firms struggled during race-track closures but are getting going again now that track and test days are allowed to run.’

TRGB manager, Gary Bates, agreed, arguing that cessation of furlough in October will have given many firms enough time to recover. He said: ‘There has to come a point where the government has stop spending all this money and I don’t think the classic car industry has been as hit as hard as some other businesses.

‘ We’re selling cars again and business is picking up; we’ve got plenty of work in the workshop. Other than some odd supply problems, we’re doing okay. We’re doing a lot of mail order, in fact that made up for a lot of the drop-in car sales early on in the lockdown.

‘I think they’re doing the right thing. We have to say “stop” eventually. We don’t have anyone on furlough anymore.’ Jon Burgess

Many specialists say lockdown orders, rejigged business plans and extended furlough schemes have allowed them to weather the economic storm – despite the looming threat of recession.