How the coronavirus impacts the automotive sector

The coronavirus impacts the automotive environment. Some manufacturers are close to out of stock for certain spare parts, which could delay deliveries, repairs and the sale of cars in Europe. Brands have found some clever tips.

The motor show of Pekin scheduled to be held next April has been canceled. The organizers preferred to skip one of the biggest events in the world for security reasons. Motorsport was also affected, the Chinese Grand Prix was postponed. Closer to home, according to some rumors, the Geneva show scheduled in less than two weeks, is also on the hot seat.

As for sales, 20% fewer cars sold in China compared to last year. We expect a drop of 30% for February. It doesn’t do Volkswagen business. The group produces and sells almost half of its models there. The financial risk is estimated at 3 billion euros and this is not the time for the German giant which will soon pay the jaws dieselgate.

Difficult to find other suppliers

The production of cars is in question. Volkswagen, like all manufacturers in China, was forced to shut down the assembly lines. It’s been picking up gradually since this week, but we are far from great productivity.

Multimedia systems like GPS, and all on-board electronics in general, are difficult to obtain. This poses problems in Europe: if you have ordered a Fiat 500 L, well you will have to be patient. The factory in Serbia, where it is assembled, is out of stock, no more audio system available. Finding other suppliers in such a short time is almost impossible and if manufacturers find them, prices will explode. It is the law of supply and demand.

There are still clever little ones. The biggest manufacturer in the UK, Jaguar Land Rover, has found a solution, and that limits the scenario of a James Bond. For the past few days, the group has been discreetly bringing spare parts from China in suitcases, it allows to bypass all the sanitary controls, must admit that it is clever.

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