Marc Zaransky Shares 3 Major Challenges Auto Manufacturers are Facing Upon Reopening

Auto manufacturing plants across the United States are beginning to resume operations after the deadly disease COVID-19 coronavirus struck in the U.S. in early March. And while businesses in the automotive sector are starting to see rising numbers, it’s still very unclear whether production and consumer demand will ramp up enough for them to survive without financial aid.

In the wake of the current pandemic, automakers are finding it more challenging than ever to restart — and bring in some much-needed profit. Marc Zaransky, entrepreneur and operator of a successful family owned auto leasing business in the Illinois’ area understands the challenges of reopening in this new economic environment. He outlines three major challenges auto manufacturers are facing upon reopening in a new environment.

Adjusting to New Plant Layout and Processes

Not only will automakers have to battle to prevent a record sales slump from steepening, but they will also have to begin learning how to adjust operations as per government and health official regulations, notes Marc Zaransky. For example, the process of reopening manufacturing plants and assembly lines won’t be like it was in the past. Rather, it will take some time to, among other things, get everyone used to the new plant layout and processes and social distancing policies. The main challenge in this case will be ensuring that employees can take their place on assembly lines without having to fear getting potentially deadly COVID-19.

Not all manufacturing plants have reopened

Another major challenge that auto makers face is delays in supply of special parts and equipment. For example, because the North American auto industry is highly integrated, a parts plant remaining closed in one state, or in another country (Canada and Mexico) could idle an assembly line in another. There’s no denying that finding a way to streamline operations when these delays occur is a major challenge, as it can hugely affect production lines and profitability outcomes for manufacturing plants in North America.

Marc Zaransky on Increased anxiety with signature trade deals

American automakers are also bracing for additional challenges this coming July, when President Donald Trump’s signature trade deal with Mexico and Canada goes into effect, says Marc Zaransky. The deal, known as USMCA, includes complex new rules for how autos can qualify for reduced tariffs in the region. The North American automotive industry has requested that all three governments hold off with the implementation of new rules, as it will require very costly and time-consuming changes.