The COVID-19 pandemic has sent the automotive industry to a grinding halt with automotive brands having to shut down temporarily in order to help stop the spread of the virus. Honda is one of those companies and it has announced that it will be extending the suspension of its production of vehicles to May 1, 2020. This was done due to the extension of the quarantine period for the US until April 30.
With the extension of production halt, car companies are expecting they will not be able to resume normal production after the quarantine period has been lifted. Auto suppliers have also been affected by the quarantine as they too face the same challenges as automakers. It will also take them some time to return to normal production.
According to Honda the move to extend the production suspension was due to the lack of market demand arising from the stay at home orders being enforced in many cities and states. This ultimately has prevented many markets from purchasing new vehicles from the Japanese brand.
Honda also noted that due to the quarantine not many customers are able to purchase a vehicle. The Japanese brand continues by stating that it “must continue to suspend production in order to align product supply with a lack of market demand.” Another challenge that the brand has to face is that some states have prevented car dealerships from selling vehicles while still adhering to the stay at home quarantine orders.
With many automotive brands having to temporarily close down, this has forced many of them to think of out of the box ideas in order to bounce back. Brands such as Ford and Toyota have already shifted their focus to helping fight against the pandemic by retooling their factories to support the production of medical equipment and face shields and ventilators. Even through tough times, car brands are still prioritizing the health and safety of the public despite the financial downturn.