Furloughed for Robots
The COVID 19 crisis has unearthed vulnerabilities to Auto manufacturers particularly as social distancing rules have hampered production facilities. The governments in the US and Europe have softened the blow by offering furloughing staff for a period of time. Auto manufacturers know this stipend of help won't last and eventually, they will have to shoulder their staff or cut jobs. As is the case of JLR who are set to cut 2,200 jobs.
What the COVID 19 crisis has done among other things is to highlight key vulnerabilities and potential remedies. Smart manufacturing has been a dance with the devil for governments, it posses a huge threat of unemployment, yet it spurs efficiency to production. However, the COVID crisis has the government in the palm of Auto manufacturing lobby groups where the argument of grants, R&D reliefs and benefits for smart manufacturing can be heard attentively. The same can also be said for the farming industry which found itself in a position to argue that pickers aught to be grandfathered out in replacement of machines.
Nation-states have almost always championed, supported and bailed out auto manufacturers as they were always seen as ways to train and employ a significant amount of people whilst also producing exports. If you think about Detroit, which was built and flourished off of Auto manufacturing yet had succumbed to a failed city which filed for…
