Confronted by the heavy impact inflicted on their operations, it appears the auto global industry is shuddering back to life, after a six-week coronavirus-induced shutdown.
Most carmakers, including FiatChrysler, Toyota and Honda, say they are targeting a gradual ramp-up of production starting by next week Monday, May 4. Other automakers like General Motors and Ford appear to be on a similar schedule, although they have yet to announce an official resumption date.
In United States for instance, VW said its Chattanooga, Tennesse plant will resume operations in phases, starting May 4, and gradually increase production over several weeks while progressively lifting restrictions.
While some industry analysts say resuming production will not only be a shot in the arm for many economies, others believe it could also set the tone for how other automotive-allied businesses may throw their gates under strict health safety precautions.
On whatever side of the shape and form the decision to go back to the assembly lines may take, the big picture here is that, it is easy to quickly shut down production in the face of a global pandemic, but restarting factories is more difficult.
It also requires a carefully orchestrated process that involves hundreds of global suppliers, perfectly timed logistics and hundreds of thousands of employees in addition to the further complication of social distancing to protect workers from illness at all companies throughout the supply chain.
In the submission of Kristin Dziczek, vice president, Industry, Labor & Economics at the Center for Automotive Research; “It’s an incredible synchronization problem,” “It means getting enough people to show up and be healthy, getting enough parts to show up when you need them and having enough customers ready to buy”.
As a precautionary measure, it is expected returning factory and industry workers will have their temperatures checked and receive masks, gloves and other protective gear while keeping six-foot distances from others.
Parts suppliers generally need a week or two head start to ensure vehicle manufacturers have the components they need to build cars.
While auto sales forecasts have fallen by millions of units from where they were in early 2020 due to the ravaging coronavirus pandemic, it will be sparking automakers to roll out unprecedented deals and adopt new tech-heavy methods of selling vehicles to shoppers stuck at home in many parts of the world.
Experts are unsure how long incentives will last, but say the pandemic could make an enduring change to the way consumers buy cars.
Globally, carmakers are confronted with several hindrances in the manufacturing processes including supply chain challenges, restrictions on production, and, perhaps most worrying, severe dents in consumer demand sparked by shelter-in-place orders from governments and economic effects, such as job vacations or layoffs.
With the escalation of the coronavirus scourge and the accompanying devastating effects of the automotive busiess, dealerships are also trying some entirely new things: they are moving online.
While online car sales were already a growing force in the automotive world, the spread of the virus has sped up dealer participation.
MIKE OCHONMA
