As the global health crisis pivots toward becoming an economic one, the automotive industry is understandably eager to know when it can begin producing cars again. The situation isn’t going to be as easy as throwing open a few breaker boxes and giving the thumbs up. A mile-long list of problems, many of which lack easy answers, will first have to be tackled before things return to normal.
Supply chains will be slow to move — and potentially severed — as other nations wait longer to walk back social distancing measures. Not all factories will resume operation at the same time, and not all parts suppliers or shipping agencies will have made it through the coronavirus pandemic intact. It’s also uncertain how quickly customers will return to the market. In tougher financial times, customers may remain hesitant in making large purchases; meanwhile, localized quarantines will undoubtedly continue suppressing sales in certain markets. Then we have the elephant in the room — the vast amount of money this colossal reboot is going to require.
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