Impacts of the COVID-19 Pandemic on Supply Chains of the German Automotive Industry

Main Article Content

Marcel Thiems

Abstract

The COVID-19 pandemic has dramatically changed our daily lives in a very short time. International supply chains, such as those of the German automotive industry, have experienced major disruptions. Measures such as border closures or production stops caused these supply chains to collapse due to increasing globalization on both on supply and demand side and the associated dependency on the global flows of goods. This in turn has led to bottlenecks, fluctuations in demand as well as delays along the entire value chain. The aim of this paper is to illustrate the impacts of the COVID-19 pandemic along the supply chains of the German automotive industry. Based on the literature review, potentials were identified to be able to react more effectively against crises in the future. The solution of previous thesis, various articles of management consultancies and statements of German car manufacturers were consulted. The obvious impact of the COVID-19 pandemic could be seen in the border closures and government measures such as home office obligations and lack of materials. There was a drop in demand in the automotive sector due to a limited processing time. Significantly, fewer vehicles were produced, and companies had to deal with immense drops in sales. The theoretical findings identified four major factors that influence the disruption of supply chains. These include complexity, communication, risk management and geopolitical factors. Due to the low vertical integration of the German automotive industry and the resulting high dependency on suppliers, the optimization of these factors is essential in order to react better to crises in the future. A fundamental step could be the digitalization of supply chains and the transparency of communication between all parties. Furthermore, adjustment of inventories and procurement at national level should be taken into consideration for the disruption of supply chains in the future.

Article Details

How to Cite
Thiems, M. (2022). Impacts of the COVID-19 Pandemic on Supply Chains of the German Automotive Industry. Supply Chain and Sustainability Research: SCSR, 1(1), 1–13. https://doi.org/10.14456/scsr.2022.1
Section
Research articles

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