The biggest car dealers in Wales fear they are about to lose trade to their English counterparts, with the motor retail trade set to open across the border while it remains closed at home.
Nine motor dealerships have signed a letter to First Minister Mark Drakeford warning him the industry is being exposed to "considerable harm", as a result of the change in coronavirus restrictions in England, ahead of those in Wales.
The retail motor industry in Wales is said to have a combined turnover of more than £3bn and employs more than 20,000 people in sales alone.
According to traders who have signed the letter, they could lose more than £6.3m over the next month, with industry experts expecting the value of used cars, which are by nature depreciating assets, to drop by 3%. They say the figure for the whole industry in Wales is likely to be greater.
The letter has been signed by Days Motor Group, Griffin Mill Garages, Hutchings, Jeff White Motors, Mon Motors, Nathaniel Car Sales, Ron Skinner & Sons, Trade Centre Wales, and White Dove Garages.
It states: “It is with great concern and disappointment we write to highlight the risk our businesses now face as a result the actions of Westminster and the devolved administration.
“In allowing the retail motor trade to open in England and not Wales you have exposed the whole sector in Wales to considerable harm.
“Whilst support has been forthcoming to support employees and businesses with immediate cash flow injections, this latest action of disparity leaves us open to much bigger risks”.
It adds: “Consumers change their car on average once every four years, during the next three weeks countless customers will transact with our English counterparts ending their relationships with local Welsh dealers.
“It should also be noted there is a built up demand from the past nine weeks of lockdown eager to do business.
“We are confident the next three weeks loss will be much greater than any normal period. This revenue will never be recovered”.
Each of the businesses to have backed the message say they have spent around £9,000 in preparation of reopening, with fresh signage, PPE and social distancing measures.
The letter signs off: “We applaud and support the efforts made to protect the health and wellbeing of everyone in Wales.
“However we truly believe you have underestimated the professionalism and commitment in the retail motor trade.
“We are confident businesses can open in a safe and controlled manner exactly the same as our English counterparts.
“The retail sector as a whole is facing its biggest challenge in living memory, these recent actions have further increased the considerable pressure we already face and put Welsh jobs at risk”.
A Welsh Government spokesman said: “We have said that non-essential retail business which can comply with physical distancing duty should prepare to re-open over the next three weeks, and we will take a decision at the next review. There is an ongoing risk to public health from coronavirus and any decision will depend on the scientific and medical evidence.
"We have delivered the most generous business support package in the UK including £1.7bn of direct financial support for businesses of all sizes through our Economic Resilience Fund and grants targeted at those paying business rates in the retail, leisure and hospitality sectors. These measures complement the support schemes announced by the UK Government.”
