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COVID-19 AUTOMOTIVE OUTLOOK FLASH SURVEY

COVID-19 Impact on Automotive Operations

U.S. Economic Outlook

46 % of total respondents have a negative outlook of the U.S. economy over the next year, dropping to only 13% over the next 24 months.

84 % of automotive industry respondents were required to suspend or curtail operations in the U.S. due to a government-ordered shutdown, along with nearly 50% shutting down operations in Mexico.

56 % of total respondents believe U.S. light vehicle production will strengthen in 2021 compared to 2020.

20 % of automotive industry respondents were required to suspend or curtail operations in the U.S. due to COVID-19 related issues after reopening, compared to only 5% in Mexico and 5% in Europe.

25 % of automotive industry respondents believe U.S. light vehicle production will weaken in 2021 compared to 2020.

Revenue Impacts

50 % of total respondents have accessed the Paycheck Protection Program.

16 % of total respondents have accessed the Employee Retention Credit Program.

44 % of total respondents believe company revenues will decline more than 20% over the next year, and another 44% expect declines between 1% and 20%.

54 % of automotive industry respondents believe revenues will decline more than 20% over the next year, and another 43% expect decline between 1% and 20%.

Forecast for the Automotive Industry

In what ways have you seen or expect to see the COVID-19 pandemic impact automotive businesses during the next 12 months?

45 % of automotive industry respondents foresee decreases in supply chain orders over the next six months. Automotive industry respondents are more optimistic concerning the rate of new supply chain orders for 2021 and beyond.

54 % material increase in expenditures for increased health and safety measures. 50 % suspensions of existing orders. 45 % elimination or consolidation of suppliers.

About the Survey Respondents

Organization’s 2019 Revenue

Role in Organization

Type of Business

12% 22% 36%

41% 23% 12% 11% 13%

Under $1 Million

C-Suite Officer Senior Executive Banker/Accountant

Automotive Industry: OEM, Supplier, Vendor to Auto Industry

55%

$1-10 Million

$10-100 Million

25%

Professional Service Providers

11%

$100 Million - $1 Billion

Attorney/In-house Counsel

Non-automotive Businesses, including manufacturers

20%

Over $1 Billion

Other

19%

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