Coronavirus: impact on the aftermarket sector and the customers
In a difficult economic context, Klaxcar, the French aftermarket specialist, answers the call and ensures the supply of spare parts, of equivalent quality to original parts, to its customers. The whole world has been hit hard by the Covid-19 epidemic since the spring of 2020. Many companies had to close their doors in the spring and again in the fall to try to contain the virus. The automotive sector has been severely affected, between dealership closures, drop in new vehicle sales, and the economic downturn.
An economy at a standstill
The coronavirus has put a damper on the global economy. While all sectors have been more or less impacted by the confinement, the automotive industry suffered a sudden shutdown as early as spring and had to cut thousands of jobs. OEMs need to review their strategy to overcome this obstacle. The future of many companies is at stake.
Many automakers have frozen their investments to focus on electric mobility, boosted by the numerous state subsidies available since June. Electric cars have seen their market share grow in a declining automotive market. New car sales fell by nearly 29% in the first nine months of 2020 compared to 2019.
Recession in France is expected to reach 11% according to declarations at the end of October by the Minister for the Economy and Finances, Bruno Le Maire. Despite the aid package announced by the government, the recovery is likely to leave many players in the automotive sector side-lined.
A recovery to at least 2019 level, will not happen before 2022, at best and if the second confinement really slows down the epidemic, thereby making it possible to reopen retail businesses and return to normal working conditions.
Impact on customers and suppliers
With the economy at a standstill, the whole supply chain slows down and eventually comes to a grinding halt. When factories closed down, manufacturers and suppliers liquidated their inventory in dribs and drabs. Shipping companies were overwhelmed with shipping requests while having to battle themselves against employee absenteeism of a portion of their payroll affected by the virus.
In the absence of regular deliveries of raw materials to manufacturing plants, production has not returned to pre-crisis levels for the time being, causing some to run out of certain parts.
Mechanical workshops have faced demand for maintenance and repairs without always being able to obtain spare parts within the usual timeframes. Production resumed slowly at the beginning of the summer, limited by summer vacations and employee sick leave, all combined with an uncertain future.
Despite the crisis, Klaxcar still answers the call
In this turbulent context, Klaxcar has done its utmost to maintain production in order to be able to supply all of its customers' orders in the shortest possible time.
By managing its supplies according to needs, the company was able to maintain production and deliveries to its customers. Precise monitoring of its production, combined with efficient inventory management, has made it possible to limit out-of-stock products. Klaxcar's customer orders were delivered in the shortest possible time for them to continue to provide their services without having to worry about stock shortages on certain part numbers.
Klaxcar has more than 7,000 m2 of storage space to hold a permanent stock of spare parts, guaranteeing availability.
In addition, Klaxcar efficiently communicates with its suppliers and customers to reassure them about the evolution of the situation and the durability of spare part stocks. From the production line to teleworking sales and marketing teams, all company personnel was mobilized during the confinement to continue the work and answer questions from customers. Indeed, despite the crisis we are currently going through, cars still need to be maintained and repaired.
The health protocol implemented within Klaxcar guarantees its customers maximum protection against coronavirus, but also guarantees that they can continue to order all the references they need to maintain their activity without suffering additional delays and the unavailability of certain parts thanks to a manufacturing tool that maintains its level of productivity.
In addition, Klaxcar's financial strength and structure enable it to secure the company's future but also jobs, despite the loss of business due to the global crisis that is having a major impact on the automotive sector at all levels.