A Hard Stop, Detour, and Reboot for the Auto Industry
Last August, Dustin Jones wrote an article entitled, “Diversification – and Survival – in the Auto Industry,” which summarized the perils of non-diversification and impending market risks for automakers as well as the threat of new technologies disrupting that sector of the economy. As prophetic as that article has proven, no one could have predicted the deep impact a pandemic would have on the global economy, the automotive sector and our personal lives. Supply chains collapsed and recovered. Manufacturing stopped and restarted again – all in the face of deflated demand and an ever-cautious outlook on the future economic recovery.
Despite an unforeseen global crisis setting the stage for 2020, the automotive industry’s response to the public’s healthcare needs has been remarkable. Companies such as General Motors, Mercedes AMG, Ford and Tesla have retooled their production capabilities to produce ventilators, CPAP devices and other much-needed medical equipment for COVID-19 patients and healthcare providers.
The financial arms of Chrysler, Ford, Honda, Hyundai, Mercedes-Benz, Nissan and others have offered options for payment deferral, late fee waivers and other financial difficulty exceptions for individuals impacted by the crisis. In the EU, companies have even provided vehicles, logistical support and other resources to ensure access to critical services. The automotive industry has played and will continue to play an essential role in responding to the crisis. But how exactly will the role be defined in the ongoing economic recovery?
Read the rest of the article by Scott Neale, Client Advisor with highlights covering:
- A look at unemployment numbers and how it relates to used car sales
- Revving the economic engine back to life
- Obstacles impacting the future including global supply chains and levels of disruption in recent years
- Generation Z and the autonomous vehicle
Access the full story on Trade & Industry Development here: https://www.tradeandindustrydev.com/industry/automotive/hard-stop-detour-and-reboot-auto-industry-16857