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5 Ways the COVID-19 Pandemic Has Impacted the Automotive Industry

When the novel coronavirus rapidly swept all over the world, industries have stopped functioning because operations were shut down indefinitely.

Around the world, governments have put in place several preventive — sometimes, extreme — measures to prevent people from contracting the disease. If there is one transmission a transmission repair shop in Salt Lake City can’t fix, it’s that of COVID-19.

5 Ways the COVID-19 Pandemic has Greatly Affected the Car Industry

Lockdowns and Quarantines

Because of the pandemic, the people who got sick needed treatment while those who are healthy were sent home on lockdown. Governments from all over the world imposed lockdowns in their respective countries to prevent the transmission of the disease since it can be contracted from person to person.

Given those conditions, the need to keep people away from each other resulted in social distancing, home isolation, and curfews. Due to this, factories and manufacturing plants have low to zero manpower to produce parts and supplies for car manufacturers around the world.

Production Suspension

Since workers are not able to report for work unless they’re frontline pandemic workers, the majority of the world’s businesses and establishments have ceased operations temporarily. For how long, we don’t know. What we do know is that due to this, there has been a widespread decrease in the production of goods across all industries, especially car manufacturing.

Slowing Down of Economies Around the World

With the temporary suspension of industries, the world’s economies have slowed down to a near halt. While there is still some activity within industries in different parts of the world, a huge chunk of the major operations has ceased operations. Without production, people have no work and no money. Without money to spend, the demand for goods decreases. As the demand for certain goods take a back seat to other essential stuff, the movement of money around the economy slows down significantly thus affecting

The slowdown has affected all kinds of trade, even stocks. Slowdowns like this adversely affect the car industry because the people’s monetary resources are depleting and are being channeled to things needed for survival.

Need for PPE

Because the coronavirus pandemic still has no cure, it’s onslaught continues. Now, more than ever, there is a greater need for personal protective equipment among all people. The new norm has become sporting face shields, face masks, and gloves whenever you go out in public. A lot of factories worldwide have been utilized for the production of PPEs as the need for it increases while the supplies are rapidly decreasing.

Some car manufacturers have joined in on the fight and have repurposed their production line to help make face masks and ventilators. This adaptation is somehow causing these plants to keep a fraction of their workers employed and stay afloat in light of the global health and financial crisis.

International Trade Restrictions

New cars being delivered

Globalization has made the world a somewhat smaller place and allowed countries from different continents to do business with each other. Under normal circumstances, this is a great thing. However, with the present situation, it somewhat poses a disadvantage.

Different industries source out raw materials and supplies from other nations. The pandemic has caused nations to shut down its borders and ports. Temporary travel and shipping bans have been implemented in some areas of the world preventing materials from being transported to their destinations. And since countries have put a stop to production and placed restrictions on trade, the world’s manufacturing plants are experiencing an unprecedented shortage of materials.

As COVID-19 continues to spread and wreak havoc across the continents, car manufacturers all over the world are doing their best to adapt and keep their companies afloat. For most of them, this year is no longer about profit but survival.

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