With factories largely shut around the world, production of new cars is definitely going to be hit.  Right now we are looking at approximately a month delay. However if Covid-19 related delays run for some months, and keep factories closed, this is likely to cause production delays. 

In terms of car releases, those cars already released, and especially if popular, would already be sitting with long delivery wait times. Good examples are the Tesla Model Y in the USA and the Land Rover Defender in Europe. It is likely that consumer demand will have hibernated during lockdown. Therefore the net effect should be the same on delivery times being pushed out only by the amount of time the factory is closed. 

For cars late in their model cycle, it is most likely that car companies will reduce production and finish the model cycle at the same point decided before Covid-19. The result will be less production but not necessarily more delays. 

For cars about to be released, these should continue, albeit a month or more later, than expected, since most details would already have been signed off prior to Covid-19.  With most motor shows likely to be cancelled for 2020 and launch budgets being scaled back, with cost pressures, it’s likely most global launches will be done online, like the 2020 Geneva motor show. 

For cars in early concept form or partial design, most car companies will be scrambling with what future models are necessary, in my opinion. Since the motor industry has likely been hard hit by Covid-19, one would expect the effects could lag on for years in the form of reduced research and development budgets plus the cost pressure to return car companies to pre Covid-19 profitability. 

It remains to be seen if Covid-19 will cause a rush of people towards even more consumption of electric or hybrid vehicles. It is said that with the reprieve the environment has had from car emissions, more people will be making environmentally-sensitive decisions. However, that will also need to be counter-balanced with lower oil prices and petrol being cheaper, which could disturb this trend.    

I was chatting to a business Leader yesterday and asked how his company was going. He was largely happy that his employees were all doing their best working from home and sticking to business as usual. However, his key worry was their mental health. I probed further.  And he made an interesting point; he felt that his employees were getting bored at home. The monotony of now getting up each day, not leaving home, doing their (predominantly) sales work in an economic environment where there are fewer sales to be had. 

A few observations from this chat

1. From my experience, people working from home get their work done quicker once focused on outcomes, so people will have idle time.

2. It may be necessary for leaders to work with their teams to plan extra proactive interesting projects at this time, apart from business as usual.

3. If idle time, think about offering a four day week or for them to clear their annual leave (it may also clear their heads).

4. Try to plan interesting team milestones over the next vital weeks, whilst the world is uncertain, to drive optimism.

5. Be extra perceptive on techniques various people are using to keep themselves motivated and devote extra support to those not motivated.

These points can also work with the motoring industry - be it sales, marketing or even service.

About Matt Chapman