Marc Zaransky Explains How the Economy Will Restart and Impact Auto Sales in the Short-term
Although the U.S. has the highest death toll and case count for COVID-19 in the world, the country still remains confident about a turning point, encouraging more people to start thinking about how and when to restart economies. This crucial and complex issue involving an unusual range of risks and uncertainties has forced many to think about the economical impacts over the short-term and how to get things back to where they once were.
In the automotive industry, for example, production lines went from thriving in the first quarter of 2020 to a near standstill as government lockdowns and social distancing policies were imposed. Not only has this forced consumer demand to fall completely flat, but it has also caused new vehicle sales to decrease drastically as a result.
While the short-term still remains uncertain for the automotive industry, Marc Zaransky, an automotive consultant and entrepreneur, understands the importance of being prepared. He shares five actions auto manufacturers can take to ensure minimal loss of sales and opportunity for re-growth.
Action Plan for Auto Manufacturers
(1) Help reinforce government safety messages by immediately addressing the need for the maximum protection of employees and customers. This protection may include hygiene, remote working opportunities, social distancing policies, and more.
(2) Create a contingency plan. Model cash flows and debt levels, identify critical operations and employees, and respond by creating practical contingency plans.
(3) If you haven’t already, put together a team to focus on supply chain assessment and risk management, suggests Marc Zaransky. This team should be responsible for conducting a value chain assessment of other risk factors that may escalate costs and impact operational capabilities. This team should also be in charge of tracking global wave effects in production and sales, and conduct scenario planning on how to redirect supply chains.
(4) You should also create a crisis response team to facilitate the open and consistent flow of accurate information between key stakeholders, maintaining stakeholder confidence and informing customers who will be impacted.
(5) Keep coping and be prepared. For those businesses that are able to stay open, try to think ahead, talk to your business partner(s) and employees, make plans for both the short and long-term, and be prepared as much as you can.
The Bottom Line, According to Marc Zaransky
We already know that the COVID-19 outbreak has exposed several challenges for the automotive sector, says Marc Zaransky, but it’s important to respond with a robust defense plan in order to recognize new opportunities of business activity.