The COVID-19 outbreak has created several challenges for the automotive sector. Governments all over the world are preparing for a huge spread of the virus. South Korea, Italy and Japan are the most affected by the virus in relation to economies. Many automotive related companies state that Coronavirus will have a huge impact on their 2020 revenues. Many of this companies do not have enough staff to run production line fully.
More than 80 percent of the world’s auto supply chain is connected to China. In January 2020 China’s car sales declined by 18 percent. The China Car Association considers that the coming month’s sales could decline by 40 percent or more compared to the same period of 2019. Production shortage result’s will impact global supply chain management for automaker’s.
China, after hitting a record low cases in march, has started reopening its factories. Automotive companies like Renault and PSA group announced they will be resuming production in mid to late April. however, in Europe, where COVID-19 is spreading quickly. This particularly applies to Italy, where the government implemented a nationwide lockdown. Automotive company’s like Fiat Chrysler, for example, has decided to shut down its plant’s.Continue Reading