As the coronavirus outbreak spread rapidly across the world, the global automotive industry was largely caught unprepared, halting auto businesses not only in China, but also in the United States and across Europe. A major impact of the outbreak has arisen from the disruption of supply chains for auto components, which are primarily manufactured in India and China.
As the coronavirus spreads, most public events have been cancelled, including those essential to the promotion of the automobile industry, such as motorsports events and auto shows. Further, fluctuations in fuel prices coupled with the event cancellations is likely to result in slowing down auto sales and launches of new vehicles into the market, as manufacturers put projects on hold for a few months or until 2021.
In addition, the automotive market currently has substantial levels of liquidity, which minimizes the risk of cash flow shortages. The coronavirus is more of a humanitarian crisis, rather than an economical one. Consequently, leveraging strong performance from extensive human resources, through transparency and safety will be essential towards the road to recovery.
Original Source: Paint & Coatings Industry, 21 Apr 2020. (Website: http://www.pcimag.com), Copyright BNP Media 2020.