Sales forecasts for April 2020 predict a 60% decline from April 2019 levels to around 0.5 million units as plant closures continue across the industry. While some southern auto plants aim to reopen by mid-April, most facilities remain closed indefinitely. Suppliers have also shut down facilities or reduced staffing as inventory levels rise. Labor cost cutting measures like furloughs and layoffs have increased significantly over the last week among automakers and suppliers as the crisis continues with no clear end in sight.

1. 12020-04-09-RB-Auto-COVID-19-Tracker-Dashboard-vF.pptx
April 9, 2020 USA Automotive Industry COVID-19 Impact Tracker
Situation summary
OEM plant target re-open dates3)
Plant closures4)
> Sales forecast: March actual numbers were
slightly better than recent expectations (1.0
m vs. 0.9 m) but still almost 40% below
March 2019. IHS is predicting April sales to
be 60% below April 2019 at ~0.5 m units.
Inventories are starting to gradually climb up.
> OEM response: 100% of US light vehicle
assembly facilities remain closed. Re-open
dates are being continuously pushed forward
while some OEMs in Southern states are still
planning to resume operations as early as
next Monday (April 13) with new safety
protocols. Only a few permanent layoffs
announced (for temp workers) but the
number of OEMs announcing furloughs and
reducing work hours jumped 5 times over the
last week. Further cost-cutting measures are
being pursued incl. reduced executive pay,
discretionary spending freezes, etc.
> CV & Off-highway player response: Many
off-highway players or individual facilities are
designated as "essential businesses" (e.g.,
critical for the food supply chain) and thus
remain open. Labor cost reduction measures
are similar to the LV OEMs while some
permanent layoffs have been announced as
well.
> Supplier response: Further supplier
facilities were shut down over the past week
while roughly half still remain operational
(partially due to supply to the "essential
businesses"). Labor cost reduction measures
are being actively pursued – number of
suppliers furloughing and reducing work
hours as well as announcing permanent
layoffs doubled over the last week.
Permanent layoffs4)
Reduced indirect staff4)
Credit rating downgrades4)
US LV market [m vehicles]
% of suspended production capacity
(indicative)
% of companies announcing layoffs % of companies' credit rating downgraded6)
% of companies reducing indirect labor6)
Cash reserves4)
Dividend suspensions4)
% of companies suspending dividends
% of companies excessively drawing on
credit lines
Mar
Feb
AvgQ4
AvgQ1
AvgQ2
1.37
AvgQ3
1.14Jan
Apr
1.34
1.48
1.44
1.43
0.99
0.53
Inventory levels2)Vehicle sales1)
2019 2020
AvgQ1
AvgQ33.64
AvgQ2
3.75
Feb
AvgQ4
Jan
Mar
4.03
3.94
3.57
3.45
3.58
2019 2020
Actual Forecast Actual
Based on publicly announced actions
1) Source – Marklines; 2) Source – Wards Intelligence; 3) Source – Autonews; 4) Since Mar 1, 2020
5) Incl. furloughs & reduced indirect hours 6) Moody's
46%
100%
n/a
57%
100%
54%
4/3 4/9
10%
24%
n/a 29%
50%
41%
4/3 4/9
n/a
47%
60%
47%
70%
29%
4/3 4/9
0%
13%
n/a
10%
27%
29%
4/3 4/9
40%
14%
n/a
40%
22%
0%
4/3 4/9
10%
14%
n/a
20%
14%
14%
4/3 4/9
Top 10 Passenger Vehicle OEMs Top 30 Suppliers
Top 7 CV & Off-Highway OEMs
Open
Apr 6
Apr 13
Apr 14
Apr 20
Apr 27
Apr 30
May 1
May 4
May 6
Indef.
Current restart date (4/9) Previous restart date (4/3) * Partial shutdown
* * *

2. 22020-04-09-RB-Auto-COVID-19-Tracker-Dashboard-vF.pptx
Our service offerings
1
2 Now
3 Now
4 Now
5 April/
May
6 May+
Ensure health of staff & identify vulnerabilities
Ramp down or shut down operations
Deploy short term liquidity measures
Secure funding and government aid
Prepare efficient re-start after crisis
Emerge stronger by improving performance and capitalizing on
strategic opportunities
Establish a crisis response center to monitor and coordinate across
all priority areas
Timeframe
Action already taken by most companies
Effective Hibernation
Cash Office
Government Support
Effective Ramp-Up
Momentum Boost
Control Room
360° Check-Up
Dependingon
scenario
Now
There are six key priority areas for automotive executives and most already
need to be addressed at this point in the crisis
1
2
3
4
5
6
!
Priorities
Dependingon
financialposition