If you’ve been delaying that car repair, Jenni Newman has some advice: Don’t wait to take your car to the shop.
The coronavirus and its growing tally of sick and dead victims around the world have been roiling financial markets, prompting countless hand-washing reminders and ruining more than a few vacations, and that’s before anyone knows exactly how widespread the effect will be on the automotive industry, including your local repair shop.
But Newman, editor-in-chief of cars.com, is among a growing chorus of industry watchers and insiders who say they expect a very real impact in the United States, including on the availability of parts needed for repairs. China, where the outbreak has been most intense, is behind only Mexico and Canada in the amount of imported auto parts sent to the United States, according to the Center for Automotive Research.
And as COVID-19 shows up in even more places, the effects will be felt in other ways, too.
“If you were thinking about doing a repair to your car, and I know for some people they may be delaying, perhaps it’s time to move that to the top of your list,” Newman said. “Better to get moving on this and get your car repaired rather than cross your fingers and hope everything turns out OK.”
The message so far from auto companies to dealers and beyond has been uncertainty about the impact — the Center for Automotive Research notes that most auto parts are still produced domestically — but that appears to be more a matter of timing and total severity. The interconnected nature of the global automotive supply chain and heavy reliance on China in particular for parts production mean the widespread factory shutdowns in an effort to contain the spread of the disease will eventually send ripples to the United States.Michael Dunne, a top Chinese auto industry analyst, predicts the impact will be felt within weeks.
“China is quietly a source for many replacement parts in American dealerships. Dealers are bound to feel a crunch in mid- to late-March as their inventory dwindles,” said Dunne, who is CEO of ZoZo Go.
U.S. parts imports from China tripled from 2010 to 2018, making production here more vulnerable to problems in China than ever before. However, automakers commonly have a one- or two-month inventory of parts that come from as far away as China, so car production here hasn’t been affected yet.
GM chair and CEO Mary Barra said her company’s North American production is secure well into this month.
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