ICDP's blog

My blog two weeks ago on the need to rethink new vehicle supply strategies seems to have struck a chord – frankly to my surprise, as I thought even the supply chain diehards had either accepted defeat or retired. 

As those dealerships that were closed reopen across Europe, we are starting to get a feel for the level of customer demand that will – or will not – help pull the industry, and our broader economies, out of the slump caused by the pandemic. 

A core element of ICDP’s work over more than two decades has been seeking to improve how new vehicle supply systems are planned and operated. 

Whilst the most important question on business agendas at the moment is undoubtedly how business will develop in the coming months, it seems fairly certain that the recovery will not be immediate. 

We now seem to be on a path out of the full lockdown in most European markets, with dealerships either open or due to reopen in weeks, and most manufacturing plants running, or due to restart in the next month.

As dealerships reopen or prepare to do so in the coming days across Europe, it is too early to determine how volumes will develop, and any significant change in consumer buying behaviour will also take some time to become evident. 

As hospital admissions and death rates fall around Europe, the conversation is now around the return to work, rather than the lockdown.  But what faces us as individuals and companies when we do get back? 

As some level of activity returns to the car market in Europe, with some manufacturers beginning production, dealerships reopening in some markets and online sales with home deliveries being introduced in others, the biggest question over the shape of a post-Covid recovery is around consumer confidence. 

It might seem a bit inappropriate to be thinking about selling cars when Covid-19 is still on a rising trend in many markets, but it is already a topic of discussion during the lockdowns in a number of markets both from the perspective of what is appropriate now, and what might happen when dealerships reopen. 

Now that hopefully everyone has made the adjustments necessary to cope with the immediate effects of Covid shutdowns in terms of working arrangements, provisions for furloughed employees and continuation of services for essential workers, it is fair to think about the next stage – a return to work at some point in late Spring or early Summer

Over the last couple weeks I’ve participated in and listened to a few webcasts discussing how players in the automotive sector are dealing with the effects of the lockdown, and what they anticipate will happen on the return to work whenever that happens.

Firstly, I hope that you are all well and safe – many of us now have family, friends or colleagues who have suspected or confirmed cases of Coronavirus, so it’s beginning to become more personal and real for all of us. 

No blog last week as we were in the midst of our virtual Spring Members’ Meeting (which worked well based on the feedback received), and returning to the keyboard now it would be tempting to focus on the immediate issues around the impact that Covid-19 is having on everyone – personally and from a business perspective.

Since the cancellation of the Geneva Show last week, there has been a lot of speculation about whether this will signify the end of motor shows. 

I was tempted to focus on “black swan” events for this week’s blog, given that I should now be on my way to the Geneva Show (cancelled) and the team are all working on the materials for our Spring Members’ Meeting (now converted into a virtual format as member companies’ travel policies are becoming restrictive).

ICDP has been challenging the value of overly-rigid customer-facing processes for some years. Real customer satisfaction is not about tick-box surveys that reflect someone’s idea of the perfect process and the things that matter, but how the customer actually feels following some interaction in a commercial process.