Essay Example on Covid-19: Global Impact on Automotive Industry

The new normal caused by the emerging outbreak of coronavirus has influenced how we work, learn, and play. Various sectors, such as sports, industries, and games, are closing. Besides, the laid measures, including people staying at home, have been the most significant factor towards the closure of such areas. The effect of this pandemic is not only affecting the automotive industry in China and the United States of America but also the entire globe. Trump administration provided the citizens with new guidelines to combat the spread of the virus, including the closure of restaurants, social distancing, discretionary travels (Barua, 2020). Similar measures have been enacted in different nations worldwide, in which it has forced most industries to adapt to the new normal. However, adjusting to the new normal comes along with a lot of challenges, such as reduced workforce and accommodation. This paper will discuss a reflection of the impact of coronavirus (COVID-19) in the automotive industry.

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Most of the countries across the globe are facing an economic slowdown. The panic has resulted in slow production in automotive, industrial products. Usually, the economic downturn affects the industry of cars as customers tentatively face a decrease in wealth and hence decrease purchase. In contrary, some economist has recognized that there will be more purchase of cars than before because people are trying to avoid public means (Barua, 2020). Such a perspective will work if people are going to return to jobs and adapt to the new normal. So fur, there is no distinct cure or vaccine for the disease, which shows that the effect will take some time. Besides, the economic impact will cause ripples, even if the health of the world was to recover today. Most of the car manufacturers are anticipating having only a delay on the purchase, and that it will change when the postponed purchase is made (Fernandes, 2020).

Many factories have been closed to control the spread of coronavirus and curb transmissions. While the workers are required to be available in the manufacturing process, activities are not going on. Some of those operating are faced with challenges of a few workers, health checks, and adhering to social distancing rule (Fernandes, 2020). Frequently, the majority of workers come in contact in the manufacturing process, which could be hubs of disease transmission. Due to the less workforce, the industry ends up manufacturing significant low numbers that have never been experienced before. Workers provide smooth and continuous production of cars. The disease originated from China, where the major hub of manufacturing automobiles is found. Despite the recovery that is developing recently, most of the plants are shut down. Foreign trading has been impacted due to the restricted movement worldwide. Generally, staying at home and social distancing among the workers have affected the car manufacturing industry (Barua, 2020) greatly.

Moreover, the pandemic has demanded more medical equipment. The sudden surge has caused emergency on medical protectives and equipment. A good number of industries are now producing this equipment and protectives such as ventilators, personal protective equipment (PPEs), and face masks (Wnukowski, 2020). Since the industries are repurposing their production, some car manufacturing has come to a standstill. Today, some manufacturers have changed their production lines to fit the medical necessities. They have made a slight modification to their production to achieve the production of this equipment. Most of the automotive industries have worked closely with health authorities and government officials to major on the production of ventilators (Fernandes, 2020).

The impact has not been felt by individual manufacturers in specific states or nations. The economy of the current century has grown significantly due to globalization. The automotive industry, especially the assembly industry, depends on international trade. Almost all industries acquire their raw materials and specific parts from various countries across the globe so that they can keep the low cost of manufacturing. When some of the nations affected much by the disease such as China stops the production of materials, manufacturing industries worldwide face acute shortages. The slow or stop of production of materials is not only a problem but also the restrictions from the international trade (Barua, 2020). It has resulted in a slow or temporary standstill of car manufacturing around the world.

Every country and international organization, such as the World Health Organization, are trying to halt the spread of this deadly virus. Those who are infected require urgent treatment. On the other hand, those who have not been infected but affected are isolating themselves at home. Such situations have created a lot of confusion, and the level of risk has made mandatory slow down or stop activities in every industry.

According to the report from WHO, more people are likely to stay at home or work from home. It will depend on the nature of their work. As a result, the demand for cars continues to reduce. Lockdown and curfews across the world have restricted the usual business, which is evident from the operation of Bordrin's plans that were canceled. Lavine acknowledges the impact of enormous uncertainty (Fernandes, 2020). This time priorities have been directed to health and not cars.

Conclusion

In conclusion, the coronavirus seems to be present for some time. Every part of the world is experiencing the rapid spread of diseases. As so, all the countries are enacting restriction measures to combat the virus. Being a responsible citizen and following the stipulated rules will allow the experts to bring the normalcy as soon as possible. Everyone is encouraged to stay at home, stay clean, and adhere to the social distancing rules. The automotive industry, just like any other industry, will rise again after the pandemic is over.

References

Barua, S. (2020). Understanding Coronanomics: The economic implications of the coronavirus (COVID-19) pandemic. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.3566477

Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. SSRN. http://dx.doi.org/10.2139/ssrn.3557504

Wnukowski, D. (2020). The Consequences of the Coronavirus Epidemic for the EU Economy. CEEOL.