Effects of the Coronavirus on the automotive industry

Coronavirus, the global pandemic that has been making headlines the world over, has affected global stock markets, trade, and several industries adversely, the automotive industry included. With automobile production at a standstill and employees under lockdown, the Coronavirus and its effects are forcing automakers to think out of the box.

From a production standpoint, General Motors who produce Chevrolet, GMC, and Cadillac, along with FCA who produce Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, and RAM have had to shut all their factories in North America until 30th March after certain employees tested positive for the virus. Other brands that have been affected include Ford, Honda, Rolls-Royce, and Tesla.

Moving away from the United States of America, Volkswagen has also had to halt production at its factories in Spain, Portugal, and Slovakia, while Lamborghini and Ducati are both set to shut plants in Italy before the end of the week. While on the topic of supercar manufacturers, Ferrari has also had to suspend production at its Modena and Maranello plants in Italy.

Production stoppages aside, the Coronavirus has also forced brands to delay launching their new models or come up with novel ideas to proceed. While Maserati has pushed back the launch of its electric sports car to September, Kia has decided to proceed with the reveal of its all-new Sorento via a livestream that you can watch HERE.

With dealerships facing the pressure and having to abide by safety regulations, a few are expected to shut across Europe and U.S. in the coming weeks, with a few others offering zero percent interest loans in a bid to move vehicles out of the showroom.

What’s known for now is that challenging times lay ahead, but with the right precautions the industry should bounce back in the coming months.