corsia logo

How coronavirus has impacted the auto industry

How coronavirus has impacted the auto industry

Throughout the years, many tough circumstances have affected the economy. However, COVID-19 might end up having the most widespread influence since the Cold War. This outbreak has presented us with truly a global challenge.

In today’s interconnected world, one industry’s shutdown can cause ripple effects on other sectors. For example, as a company that offers car shipping services, the state of the auto industry can affect us. In this post, let’s see how the pandemic has impacted the auto industry and how that, perhaps, translates to all of us.

How have automakers been affected by the Coronavirus outbreak?

With the start of the outbreak, many businesses were forced to take drastic measures. Sure, sending the IT team to work from home is easy. But how do you keep an entire factory safe from the virus? Faced with this challenge, country officials left such companies no other choice but to shut down production.

The auto industry, for example, took a massive hit. Manufacturers had their factories closed for nearly two months. It all started with Europe at the beginning of March. By the end of that month, all of Europe’s auto factories had shut down. US manufacturers also had to follow suit and halt production.

Fortunately, most of them have reopened, and now auto workers are slowly going back to work. Even so, they have to follow new rules, and returning to their old rhythm will be a challenge. Things still remain slow, as uncertainty continues to loom in the air.

How has the auto industry shutdown impacted the economy?

When the Detroit factories shut down completely, about 150 thousand workers were left idle.

Those months put a terrific strain on the economy, because of the necessary unemployment benefits and supplemental pay. Even when people are returning to their workplaces, the two-month idling has residual effects.

Problems may also arise elsewhere. As we have mentioned in our Corsia Logistics COVID-19 Update all the way back in March, most business sectors had been presented with various issues. Those were somewhat magnified by the auto industry shutdown. Here is how:

  • Dealerships. Car sales plummeted, with some companies reporting 37% drops. However, that does not necessarily relate just to being shut. During such crises, people do not usually splurge on big purchases. That leads to a natural decline in car sales. Still, it is somewhat of a vicious cycle that ended up hurting both automakers and dealerships.
  • Car shipping. Carriers that work specifically with manufacturers and dealerships, had their work cut off as well. Though shipments did continue, the chaos around the pandemic made things quite unstable. Ultimately, fewer vehicles sold meant fewer vehicles shipped too.
  • Car shows. Virtually all big shows in various niches had been canceled. The Geneva Motor Show cancelation was one of the most severe hits for the automotive world. Such things lead to a lot of marketing plans (and money) going down the drain. As of now, big-scale events still have no green light. However, some smaller-scale events, like Ford Performance, have gone virtual.
  • The enthusiast market. You may not realize this, but car enthusiasts are a big crowd. Thankfully, a few weeks without manufacturing has not been an issue with them. The market did see somewhat of a dry period, but that is because essential products win over hobby splurges.

Things have a long way to go before we call them normal once more. We do not know what the long-term ramifications are going to be, but we can hope for the best. Predicting such outcomes is a hard task, so we prefer not to speculate. One thing is certain though – automakers already operate on low margins. Which begs the questions…

Will car companies find a way out of the crisis?

Everything is getting a shakeup now. One look at the stock market can tell you as much. With that said, you can rest assured that most big companies have contingency plans. So, do not fall for economy doomsday scenarios just yet.

Of course, there is no way that those two months will not have a huge effect on the car market. We do have to admit that 2020 will simply not be as profitable as the last couple of years.

With that said, businesses have been expecting a recession for a while now. Many economists have pointed out that we have had quite a good run, and it just has to end at some point. The Coronavirus sped up the process that was inevitable anyway. Let’s save ourselves the doom and gloom predictions, and instead take a hopeful look as businesses slowly open up doors.


Right now, this is what you need to know: the auto industry has gone through a rough patch. And so has the entire economy. Still, we have always recovered after a crisis. Stay hopeful, do not panic, and do the best with the time you have. You can use it to improve your skills or even develop new ones if you are not back to work yet. That is always valuable!

Share our experience:
Are you ready to ship a car?
Recent posts

Shipping my car to another state

Vehicle transport is a service that private customers and businesses utilize daily. Whether you are relocating or going for a long vacation, shipping your car

car shipping quote

Truckers Can Fight Sex Trafficking

If You See Something, Say Something! This is the slogan of the nonprofit group Truckers Against Trafficking, the organization’s main goal is to have more

Read more

Corsia Logistics team works hard every day to ensure reliable expedited car shipping service. Our customer reviews prove that.

5-Star Rated Car Shipping Company

5/5
5/5
5/5

they trusted us

and here's what they say

Simon Moore
Great company
Read More
Looking for a logistics company, to ship my car, from California to Illinois,my first search, then Corsia showed up, skeptical. Call and a very friendly secretary: Elena. She guided me through, I scheduled and as she explained, all when smooth as scheduled Very happy I did the right choice. I'll recommend this great Company to anyone that is thinking to relocate a vehicle. Thanks Corsia logistics for your honesty and professionalism!
Elizabeth Woodward
High five's all around!
Read More
Corsia was highly recommended by a friend in the automobile industry. We needed to transport a cargo van from Seattle to Florida. We contacted Corsia who quickly arranged transport within just a few days. Communication was outstanding! Just a few email confirmations and we were all set. Mike was great and arrived right on time and delivered to Florida on schedule. Tip-avoid the hornets nest of auto brokers on line and just contact Corsia for a truly great experience!
Carrol Tiffany
Amazing
Read More
Corsia has been amazing. Their prices are really competitive but more importantly their customer service has been 5-Star. Elena followed up with me every step of the way, making sure there was no miscommunication between me & the driver. We are using them to ship a 2nd vehicle & would not hesitate to use them again!
Tony Boyd
Definitely recommend
Read More
I have recently used Corsia for long time family car with sentimental value that was moved I have recently used Corsia for shipment of my vehicle from Oregon to Arizona by recommendation from other family member who also used Corsia in the past. I am very pleased on the service and the communication throughout shipment. Ken was my direct contact and kept me informed along the move The car was picked up and delivered as communicated. I did use a enclosed mover and the driver was also clean cut professional and treated car as his own. I would definitely recommend Corsia again with the experience I have had. Thank you. T
JW
Top notch
Read More
Top notch Transport - Porsche 997 Top notch! As easy and efficient as one could possibly imagine. Great customer service.. thank you Luke. Great prices. Check. Timely communications. Check. Clean transport trailer. Check. Supremely careful driver. Check. Timely arrival. Check. Don't mess around elsewhere, just call Corsica and feel confident your transports needs are going to be exceeded. My Porsche 911 rode like a Queen in her enclosed chariot. I've never needed a transport company before, and I surely will use them every time. Do yourself a favor, seriously. Call now.
Geet Mp Haryana
Reliable, efficient
Read More
Corsia rep (Elena) was very proactive. Helped ship a car from CA to GA. She checked in with me via email quote and several phone calls to find me the best possible quote for the fastest available service. After several communications, Corsia was able to schedule a vehicle pickup the next day. The driver communicated well, and the vehicle arrived in final destination faster than we expected in perfect condition. I highly recommend using Corsia's reliable, efficient service.
Cay Liptak
Clean, efficient, wonderful
Read More
Thanks, Corsia! Pickup was so clean, efficient, and wonderful -- my only recommendation is to make sure you schedule it during the day so you can fully review the car in the daylight. Drop off was equally wonderful, and the whole trip went down without a hitch (pun intended!). Seriously, Corsia delivered my Jeep from CT to California with no issues or bumps in the road!
Csaba Kovesdy
Truly positive experience
Read More
Corsia Memphis to LA, mid-size SUV. I looked at 4 different companies amd Corsia was the most responsive of them. While being responsive, they were not unduly aggressive: when I indicated that I need to wait a month before making a decision they stopped contacting me and only came back with a reminder when I really needed it. Once I decided to engage Corsia they found me a transport within two days and the car was delivered (from Memphis to LA) in another two days. I had a truly positive experience.
Kelly Torres
Highly recommend
Read More
Working with Corsia Logistics was a great experience. Working with Corsia Logistics was wonderful. They were able to find a driver right away to transport our car. They were in constant communication as to when the car was getting picked up and dropped off. The driver also communicated with me as to when he would arrive. I would highly recommend Corsia Logistics.
Amy Nelson
Excellent Organization
Read More
Corsia was an excellent company to work with while I transferred my car across the US. A friend of mine suggested I use them as they had been very organized and trustworthy with her own car. I researched a few different place but decided to go with Corsia and I'm so glad I did! Any questions I had throughout the process they answered quickly and clearly. I would definitely use them again in the future and recommend them for others to use.
Previous
Next