FEATURE
RIDING THE STORM
T&FME takes a look at how the automotive industry is dealing with the threat of the Coronavirus
T
he commercial vehicles and automotive industry enters April under arguably the most pressure since the Second World War – and certainly the oil crisis of the 1970s. The industry has blossomed in the intervening decades as a major beneficiary of the globalisation; making it possible to place plants across the world and plugging into a vast network of factories and suppliers. This has allowed many brands to ride out the booms and busts of economies and extend their reach into fleets working in every corner of the globe. The emergence of the Coronavirus at the beginning of the year (see page 36) is a considerable challenge in the short term; shutting down whole sections of their supply chains and freezing what had been promising
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progress in 2019. The ongoing Chinese and US trade battle may have been causing uncertainty before but now there is real concern that a global recession good emerge; even if the disruption caused by COVID-19 is only for a few months (albeit that seems unlikely as T&FME goes to press – Ed). The virus started in the automotive heartland of China and it is of short coincidence that it has hit in Europe’s manufacturing centres, particularly in Italy which has suffered more than most countries. Germany and France, home to brands such as Daimler, MAN Truck & Bus and Renault, have consequently brought in draconian measures not seen for 80 years with borders closing and the movements of people under close scrutiny. By the middle of the month, the European Automobile Manufacturers’
The health of those people that are the backbone of our industry, and their families, is paramount ”
Association (ACEA) was describing the effect of the coronavirus on society and the global economy as unprecedented, “with grave consequences for the automobile industry. Indeed, most of the members have already announced temporary closures of plants due to collapsing demand, supply shortages, and government measures, and are facing cases of corona infections and quarantines among their employees.” Eric-Mark Huitema, ACEA’s Director General says it is clear that this is the worst crisis ever to impact the automotive industry. “With all manufacturing coming to a standstill and the retail network effectively closed, the jobs of some 14 million Europeans are now at stake,” he said. “We call for strong and coordinated actions at national and EU level to provide meconstructionnews.com
