How Is COVID Affecting German Auto Manufacturing?

How Is COVID Affecting German Auto Manufacturing?

There was little doubt that the COVID-19 pandemic would affect the automotive industry and automotive supply chain. Every economic space has caused some form of disruption, and German auto manufacturing is not immune. In fact, the German auto manufacturing industry and supply chain has been hit hard.

This has led to serious revenue issues that could ripple over into other industries, and even other countries. Many German car owners are rushing to find extended vehicle warranties to weather the storm, like this one at

What is being seen today is that COVID dismantled production and the supply chain. This has impacted not only the manufacturing of new cars, but also the manufacturing of parts for German automobiles already on the streets across the globe.

The German Auto Industry And COVID

Germany has been at a standstill economically due to the coronavirus pandemic. What has been the cost for German auto manufacturing businesses?

There are undoubtedly supply chain breaks, as well as macroeconomic uncertainty. Manufacturing hubs in Germany and across the globe have been shut down. There is also a lack of supply visibility for the foreseeable future. In fact, the effects of COVID on the German auto industry may be irreversible.

Impact Of Economic Uncertainty On German Auto Manufacturing

The car industry is one of Germany’s leading economic contributors. There are over a million jobs in this industry with nearly 500,000 of those jobs in south Germany. These jobs also provide good pay and stability to employees, which trickles into the economic health of Germany.

However, the economic turmoil is causing troubling times, now and in the future for the country’s auto manufacturing industry. Jobs, income, supply chains, and tax revenue are all impacted. There will be a decline since supply chains are disrupted due to health restrictions. And health restrictions are also applied to the manufacturing hubs themselves. Not to mention, German car sales are low with dealerships closed and other economic issues.

What Does The Future Hold For German Auto Manufacturing Companies?

The German auto industry may see things turn around slightly in the latter half of 2020. Purchases may rise in countries like the United States and United Kingdom for German vehicles due to government purchase incentives, as well as dealership incentives.

But this gain in manufacturing and sales does hinge on the decrease of COVID cases and loosening of government restrictions on citizens. Incentives may not make a difference if buyers can’t get to dealerships.

There have already been increases in cases globally, especially in the United States. Florida, Texas, and Michigan are among states that have seen exponential rises, and state governments have tightened restrictions.

Online vehicle purchases may rise due to the inability to actual step foot in dealerships. Online car buying sites may see an uptick, and an uptick in German automobile purchases. This allows car consumers to take advantage of deals online, rather than in store.

The other issue of having enough inventory on hand, and having a strong enough supply chain to get automobiles where they need to go. All of these factors will play into how the german auto manufacturing industry survives the COVID-19 pandemic.

Can You Buy A Vehicle Online?

If you are in the market for a new or used vehicle during the pandemic, where do you turn? There are a number of websites that sell vehicles, like German automobiles online. Sites to buy a car online include,, Gumtree, eBay motors, and more.

These sites are like classified car buying listings, but they are a bit different than online car buying services. Online car buying services like have German automobiles, and other cars and trucks available for contactless purchasing. And prices may be much lower than buying at a dealership.

This of course depends on the type of vehicle you want to buy, mileage, features, and more. There are options online to purchase vehicles, but buying a new Mercedes may prove difficult as COVID continues to disrupt the German auto manufacturing industry.

Wrapping Up . . .

There are certainly a number of factors that will affect the German auto manufacturing industry as we continue to navigate the coronavirus pandemic, at home and globally. No country is immune to the supply chain problems ahead.

Even if workers head back to the manufacturing plants, and consumers find decreased restrictions on mobility, it may still take a year to regain the supply and demand that was in place prior to the pandemic.