Side view - line of cars

How is Covid-19 impacting the automotive industry?

2 min to readFleet management
To prevent further spread of coronavirus, most car manufacturers are taking a controlled response, such as by suspending production and putting orders on hold. However, the Covid-19 pandemic is just the latest in a series of challenges for the automotive sector to contend with.
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After all, the industry has been in turmoil for some time now as it struggles to cope with several rapidly evolving developments. For example, in recent years car manufacturers have had to deal with a shift in consumers & mobility needs, emerging technologies (e.g. artificial intelligence and automation) and ever-tighter environmental regulations, to name but a few.

5 disruptions to the new vehicle supply chain

All in all, the automotive industry is currently being affected by five disruptions that are having an impact on the supply chain for new vehicles:

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.

Thankfully, from the OEM perspective, there is also a silver lining to this situation: the decline in demand is causing a buildup of stock. Although high inventory levels are not always desirable, in this case car manufacturers will benefit from extra agility, enabling them to capitalise on the sudden upswing in demand when the coronavirus situation normalises again.

Impact on the leasing industry

For the leasing industry, the shortage of new vehicles will pose the biggest challenge in the short term. To help business owners and fleet managers mitigate the effects of this, we shared a couple of tips in our previous blog (2 immediate steps companies can take to reduce the impact of coronavirus on their fleet). Meanwhile, within LeasePlan, we have drawn up a full Covid-19 Response Plan to continuously monitor the supply of new vehicles. In conjunction with LeasePlan's team of experts who are specialized in the challenging dynamics of today's and tomorrow's mobility market, we are committed to ensuring we can adapt to the ever-changing situation in order to keep our customers as mobile as possible. Ask your LeasePlan contact person for more information or support.

How can LeasePlan help me?

posted on March 30, 2020 by David Wefers Bettink in Fleet management
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International Fleet Consultant
March 30, 2020
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