COVID-19 and the Automotive Industry
The disruption to the automotive industry is widespread and quickly evolving as the global pandemic continues. Heavily impacted areas include major automotive production and supply chain hubs, many of which are co-dependent on each other. Executives are forced to make critical decisions in the face of massive uncertainty, as guidance, forecasts, and plans are changing by the day.
As the global crisis continues, we are anticipating pervasive financial distress within the automotive supply base. While it is still unclear what the long-term financial state of the economy will be once the immediate crisis has passed, companies across the automotive industry must take proactive measures and be nimble now to address the immediate disruption and prepare for what the new normal may bring.
Key focus areas
The following key priority areas are critical for effective crisis management and business continuity planning, which many companies are addressing at this point in the crisis:
- Ensure health of staff and identify vulnerabilities
- Ramp down or shut down operations
- Deploy short- and medium-term liquidity measures
- Secure funding and government aid
- Prepare for efficient re-start after crisis
- Emerge stronger by improving performance and capitalizing on strategic opportunities
