Coronavirus and the impact on the Automotive Industry
The Coronavirus has had a strong influence on the economies of countries around the world, including South Africa. Businesses are closing, people are losing jobs and things are just not getting better. Fortunately for some, various automotive manufacturers have responded creatively and reactively by putting mechanisms in place to ease the impact of COVID-19. Let’s take a look at how some of your favourite manufacturers are responding to the pandemic.
Jaguar Land Rover – The English manufacturer has confirmed that it will temporarily suspend production at its UK manufacturing facilities. The company’s intention is to resume production towards the end of April, subject to review of the rapidly-changing circumstances. Their India, Brazil and China facilities, however, remain open.
The company has also deployed more than 160 vehicles globally to support emergency response organisations during the coronavirus crisis. This includes 11 vehicles that have been provided to the South African Red Cross Society to assist them in promoting hygiene, creating COVID-19 awareness and distributing hygiene essentials like gloves and masks in the most vulnerable areas of our country.
Toyota, Lexus and Hino - Leon Theron, Senior Vice President of Sales and Marketing at Toyota South Africa Motors is optimistic about the measures the company has put in place: “I would therefore like to take this opportunity to reassure our customers that we have taken every action we possibly can to mitigate the effects of spreading this dreaded disease by requesting specific steps that all our dealers take to increase their hygiene and sanitisation procedures, as well as recommending practicable solutions to minimise social interactions.”
These steps include all dealership staff members sanitising their hands throughout the day, compulsory sanitisation for all dealership visitors and fewer people to be transported in courtesy shuttles after they have dropped off their vehicles for servicing.
Toyota Financial Services has also announced that with effect from 1 April – 30 June 2020, they will implement measures to provide relief to individual and business customers whose financial stability has been impacted by COVID-19.
Mercedes-Benz South Africa – The German manufacturer has made a decision to gradually decrease production and manufacturing at its South African facilities in East London. Production will eventually halt for a period of five weeks from 9 April 2020.
Nissan South Africa – Nissan is prioritising the health and safety of their staff by halting all operations at their Rosslyn plant. The plant will remain closed indefinitely, aside from a skeleton staff to maintain and service equipment. In addition to this, a work-from-home approach will also be implemented for Nissan employees during this period.
Also worth a look: the Range Rover SV Platinum Edition: A R6.2 Million Ode to South and the Land Rover Defender.
FAQ
Q: How did coronavirus affect Land Rover production in South Africa?
Land Rover temporarily suspended production at UK facilities during the initial COVID-19 outbreak but kept their India, Brazil and China plants running. The company also donated 11 vehicles to the South African Red Cross Society to help distribute hygiene essentials and create COVID-19 awareness in vulnerable communities across SA.
Q: What support did automotive manufacturers provide during COVID-19 in South Africa?
Jaguar Land Rover deployed over 160 vehicles globally to emergency services, including 11 to the SA Red Cross for hygiene awareness campaigns. Toyota SA implemented strict sanitisation procedures at all dealerships and introduced social distancing measures to protect customers and staff during the pandemic.
Q: Did COVID-19 impact Land Rover vehicle prices in South Africa?
While the article doesn't specify exact pricing changes, production suspensions and supply chain disruptions during COVID-19 generally led to increased vehicle prices and longer waiting times for new Land Rover models in the South African market.
Q: Is it worth buying a Land Rover during economic uncertainty?
Land Rover's strong resale value and the brand's commitment to supporting communities during COVID-19 shows reliability, but consider your financial stability first. The brand's premium pricing means you're looking at significant monthly payments during uncertain economic times.
Should You Buy It?
During economic uncertainty like the COVID-19 pandemic, buying a premium vehicle like a Land Rover requires careful consideration. While Land Rover showed impressive community support and maintained production resilience, their vehicles remain expensive investments starting from around R800,000 for entry models. If you're financially secure and need the capability, yes, Land Rover's proven reliability during crisis makes it worthwhile. However, if COVID-19 has impacted your income, rather wait until economic conditions stabilise before committing to premium vehicle payments that could stretch your budget too thin.
