Here we are. Italy’s automotive segment restarts its engines: when other international brands have already started working, Italy’s businesses are also getting ready for “phase 2”. The segment reopens after consumption has dropped in an unprecedented manner. The last estimates by UNRAE, the association representing foreign manufacturers in Italy: car registrations decreased by 85%, while for April it will be circa -97% or -98%.
Italy’s automotive segment restarts its engines
The Coronavirus shock could lead businesses to rethink their supply chains. “The pandemic overturned the industry, putting profit numbers under pressure and thinning margins – points out Teodoro Lio, Managing Director European Mobility Lead at Accenture, to Corriere della Sera -. In comparison to the 2008 crisis, there was quicker reaction time, which allowed companies to safeguard key assets, such as liquidity”. There are news coming in, we were saying: “In perspective, we can believe that the auto industry will rethink the length of its supply chains, shortening them and bringing production closer to the assembly locations”. It’s a trend that applies, mostly, to the Old Continent: “All players, in Europe and Italy, will need to rethink their system – concludes Mr. Lio – to help manufacturers and the entire chain to restart and face the new normal”.