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Hilco Global Report Highlights Cascading Impact of COVID-19 on Auto Industry

March 31, 2020, 08:00 AM
Filed Under: Automotive
Related: Hilco Global

Hilco Global has issued a timely and relevant report on the impact of rapidly evolving events in the automotive industry, ways in which manufacturers and suppliers are rising to difficult challenges, and how the fallout from COVID-19 may lead to difficulties in jump-starting the industry as the current crisis dissipates in the second or third quarter of this year.

Automotive Industry Braces for Impact, Actively Responds to COVID-19, authored by Keith Spacapan- Vice President of Hilco’s Automotive Practice, examines the cascading effect of the pandemic across the industry, including a look at the potential impact of a rushed and less-than-orderly shutdown of operations at many locations.

The report also explores how an unprecedented lack of consumer interest in car buying during this period has driven manufacturers and dealers to extend special financial terms and deferred payments in order to move inventory; and how some manufacturers are adopting a wartime mentality, taking steps to tool-up for production of items including medical masks and hospital ventilators.

“The most recent development is that we’re now starting to see significant supply chain impacts on automotive parts suppliers,” says Spacapan, “Given that the U.S. is at least 60 days behind the COVID-19 curve established in China, and that China is only now returning to some level of functional normalcy, it’s likely that we’re still only experiencing the leading edge of the greater industry impact to come.”

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