Car industry says its doors remain open

The Australian car industry says its doors remain open as usual and is confident it can maintain immediate stock levels despite stricter new measures introduced due to the Coronavirus pandemic.

Prime minster Scott Morrison has announced the closure of “non-essential” services by midday on Monday (March 23), including pubs, clubs, theatres, cinemas and indoor fitness facilities.

But the Federal Chamber of Automotive Industries (FCAI) today confirmed that car dealerships, workshops and related facilities across the country would continue to remain open with stricter hygiene measures in place.

“The majority of dealerships have a large footprint and there isn’t really issue in maintaining personal social distance,” an FCAI spokeswoman told carsales.

“In addition there are quite a number of different initiatives being put in place by dealerships at the moment and by the manufacturers themselves.

“[These include] New hygiene measures when handing over vehicles, additional video conferencing in the place of face-to-face contact. Dealers and customers are finding are way and we’re doing everything we can to protect everyone’s well-being.”

Car dealerships, workshops and the aftermarket industry opened its doors as usual this morning, and most OEMs have confirmed to carsales they have several months’ stock of both new vehicles and parts in their inventory.

However, the long-term prognosis is more clouded. One major metropolitan luxury car dealer has told carsales on the condition of anonymity that some customers are already waiting up to three months for new parts to come in – predominantly those sourced from China.

Indeed, if PM Morrison’s forewarning about the pandemic lasting “at least six months” comes to fruition, the stock issue is set to become more pronounced as the global automotive industry shutdown takes effect.

But the FCAI spokesperson stressed that, for now, it was situation normal.

“From the latest information we have, there is no issue on [auto freight] boats coming into Australia,” the spokesperson said.

“We’re in unchartered territory at the moment and with parent companies in the UK, the US and Asia shutting down manufacturing it is quite possible that supply will be restricted eventually. My understanding is that we still have stock at the moment.”

In a press release this morning FCAI chief Tony Weber added: “The industry is keeping a watchful eye on the activities of parent companies across the globe, including in Europe, the USA, the UK and Asia, where production facilities in some plants have been temporarily closed.

“At this stage there are no major restrictions on stock of either vehicles or parts.”

The FCAI said it was in early talks with different levels of government about potential stimulus and assistance packages that would help support the industry through the coming months.

New car sales figures due to be released late next week are set to illustrate the full extent of the coronavirus outbreak on the Australian car industry.