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The future of the auto industry and Covid-19.

The future of the auto industry and Covid-19.

The coronavirus brought the entire planet to an abrupt halt and profoundly impacted many industries across the globe. The automotive industry is no exception, and what happened this year in 2020 can have lasting implications for many years to come. 

The Covid-19 virus started in China and quickly spread like wildfire across the globe. Many companies were forced to shut down production or cut back to skeleton crews to curtail the virus's spread. The US alone has lost over 120,000 American lives and counting even though they closed schools and cut down on the number of people in workplaces. Unemployment has skyrocketed to unprecedented heights while Americans still struggle to make ends meet. 

What does all of this mean for the auto manufacturing industry? China was the first place hit within the virus and was forced to shut down entire factories to keep workers and their families safe. Other factories around the globe followed suit. Soon there was a shortage of car parts needed to keep the assembly lines moving forward. Restrictions and closing are just now lifting and have restarted many factories around the world. 

Another factor in the automotive industry is human behavior and buying patterns. During the last three months of the shutdowns due to Covid-19, fewer consumers than ever are purchasing new vehicles. With economic uncertainty and fear of loss of income, many families are putting off buying a new car until they have better financial stability. Fewer people are buying cars because of shutdowns, fewer new vehicles produced, and the crazy economy. This means there will be less brand new vehicles but a massive surplus of "new old stock." 

The automotive industry has taken a hit just like other industries right now. Even though fewer new cars are being produced, car buyers will find incredible deals and opportunities on current inventory sitting on car lots across the country. With gas prices being the lowest we've seen in decades, consumers may take this opportunity to make a smart purchase on a vehicle. Experts believe the automotive industry may go through some significant changes but come out just fine on the other end. 

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