The COVID-19 crisis has caused a significant contraction in car sales across Europe, with sales expected to be down to three-quarters of 2019 volumes. This has highlighted the fragility of the traditional car distribution system and intensified the need for change. Ongoing transformations such as EV sales, new car ownership models, process digitalization, and new sales models will challenge financially weakened retailers even more. This is the time for OEMs to accelerate change processes by reviewing and adapting strategies and investment plans, although financial resources will be limited over the next years. The crisis is expected to negatively affect sales volumes for years, with many dealers fighting for financial survival. Lockdowns and sluggish demand in the current recession will seriously affect the entire automotive supply chain, including retailers, for the next two to three years.
