The Automotive Supply Barometer published by the Original Equipment Suppliers Association (OESA) fell to an all-time low of 15 index points in Q2 2020—which is on part with the 2008 financial crisis. 

 

According to the OESA, the rapid onset of the COVID-19 pandemic caused the index to dip 32 points from 47 in the first quarter of the year. Most of the association’s manufacturing members are pessimistic about the industry recovering this quarter. 

 

The OESA considers the pandemic a continued threat to production over the next half year. It believes the US economy is weak and that poor sales will persist through the second half of 2020.

 

The OESA indicated that research and development investments were delayed by a full quarter during the past half year. It also noted that most of its members expect US auto exports to increase over the next six months, with a large chunk shipping to Mexico and China. 

 

According to most members, a labor shortage induced by a second wave of infections could hamper production, while supply of input goods is also a growing concern. 

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