Leveraging crisis to build lasting advantage for the automotive industry.

The effect of the coronavirus on society and the global economy is unmatched, with severe consequences for the automotive industry. Large scale manufacturing interruptions, closure of dealerships, and the lockdown has accelerated innovations in the auto industry at a speed and scale that nobody could have predicted. Moving forward, new consumer needs born in our current crisis will likely drive lasting revolution for both OEMs and dealers.

Listen to our PODCAST to find out how MSX leaders believe auto retailers will need to adapt to COVID-19’s longer-term impact. How can they best leverage this crisis to build a long lasting advantage?

Transcript

spk_1:   0:11
Hello, everyone. Welcome to our podcast. My name is often guys Wake, and I am vice president product management at that Miss six. Joining me are Patrick Carton cop, chief executive officer Emma, six. Chief product officer Peter Van or smiling and Andreas are NT vice president operations three Americas. Today we will discuss about the impact off the covert 19 crisis on the auto industry, and the possibility of the automotive industry to leverage describes is to build a lasting advantage. There is no denying that the covert 19 or Corona virus marks to be getting off a period of turbulence for, amongst others, the automotive industry. Next to the tourist industry, an airline industry, the automotive industry is suffering substantially from immediate impact. Various research shows a reduction of new vehicle sales in 20 21st 2019 ranging from 20% less car sold in China, 27% less in the U. S. And up to 30% less in some major European markets. No doubt this will lead to short term actions from the site of the manufacturers in production, potentially in development and launch plants, as well as in the area of distribution today, we will focus primarily on the part of the distribution, the changed commute, consumer expectations, the effect it will have on the manufacturers and retail business models, and how such crisis also can help drive and change into these models for the better of the industry in the whole and the various players. Patrick, How do you think manufacturers are coping with the current situation? You see any difference in reaction in China versus Europe, for instance.

spk_0:   2:06
It's very tough situation for them. You have a business which has a high fixed costs, and almost everything came to a standstill. That is, let's say, I think the same in China, wars is in the in Europe and C in China came a bit faster and the government took a much hotter let's say cut on that we're in Europe. I think it came a bit later in a bid staggered. But I mean also all the manufacturers have closed their plants in Europe and it's a really tough situation. Across the dealers that close, there's almost no sales. The after sales market is going slightly, so it's a very Taft, the situation where now where China is starting job map again. I mean, in the last two weeks, I mean, the pants were starting toe map. The dealers were starting toe map and car sales is really taking up in Europe. I think we're now plateau ing a lot off this country's. Now we're like Germany, um, where the measures are released, where the discussions about opening up now the plants and corporate plans are there. So that was lonely startup. Looking forward, I would say China is probably as the demand was always higher. You see, also in the first days now a lot of first time bias. It's a luxury with Europe 1000 half, so it won't be easy to and quick to get out of that situation and will still cause amount of destruction.

spk_1:   3:44
Eso so looking at your princes, you see a variety of Marcus, obviously a different level of where they are in the pandemic. Eso Do you see variation in terms of how markets are approaching that, and what do you think it's the is the influence on the on the automotive industry?

spk_0:   4:00
Some markets got hit earlier than others. Some markets got much harder hit and reacted harder on that will have an impact. Also, getting now out of the crisis won't be easy because every oh am or has designed his supply chain in a single European market and even beyond the region Europe. But now, in the crisis, every market is reacting with his own measures. So a lot of the supply chain is interrupted. And now to keep the things running and to ramp up again is not an easy task to do.

spk_1:   4:38
Andrea, how do you see the situation North America,

spk_3:   4:41
rob, like Patrick described. It's a very difficult situation for all the manufacturers and their dealers in North America as well. We're probably 1 to 2 weeks behind. In terms of the response to the crisis, the plants are still closed for most only EMS. The plan in the majority of cases is to look a reopening around the beginning of May, depending on what the recommendations both on a federal and on a state level are gonna determine. Um, dealers are in a similar difficult situation. Obviously, traffic in the dealerships has been reduced almost zero, um, and also the dealers air waiting. Teoh figure out how that is going to evolve. There was a slight change last week as um, the dealers were deemed an essential operation on the sales side as well as on service side, which is definitely operative sign for the dealerships. But that has not determined yet. Or at least we don't know if that's determined. A huge are significant uptick in sales. Um, the sales drop in the U. S. Until now, at least with the information that is available until now in April has not been as dramatic as sales drop in China. We know that China dropped over 80% versus the previous year in sales in the US, the drop has been a t least again, with the data available today probably closer to 55 to 60%. So I think it's still a situation that is very uncertain. And I think the response and what the plans were gonna look like face to. So for reopening the country, we're gonna determine how long the crisis is gonna last and what the actual impact on the industry is gonna be.

spk_1:   6:44
Eso So do you see variation around the country in from state to state? Obviously, the severity of the crisis is different, and how pandemic is hitting But But do you see a lot of variation around the country? And will this have an impact?

spk_3:   7:00
Yes. There are slightly different reactions, depending on the various regions. But again, it's early to be able to confirm that with data. So they're mainly based on the state home orders. Um, we are at a point now where 42 out of 50 states do have stay at home order is so it is likely that the actual sales numbers we're gonna be quite similar across the entire country.

spk_1:   7:29
Ah, Peter. Recently yesterday, I heard used the development of the old price s. So there is some recent development in all prices. Has Compton also all time low? I think even negative Yesterday. So you got money when you bought a crude oil? Ah, and so what do you What do you take from that? Actually,

spk_2:   7:52
it is a reflection off thean impact. Um, that is currently expected on the economy. So we don't know what We don't know how people are thinking. Is this a V shaped U shaped l shaped recession that we are getting into about the ah, the things that have happened with oil. Ah, I think, by and large also impacted by other items than just the economic reflection off of things to come.

spk_1:   8:27
Let's talk about what you just touched upon and namely the recovery and how this is going toe go back toe whatever it's called the new normal, um, eso to post locked down face and the recovery and timings and actions we see scenarios that go from a sharp V. As you said of sharply recovery, a stretch V recovery and what is called more you curve recovery. And if I look at the time frames day, they range from 9 to 12 months upto even three years. Patrick, what is your view on this?

spk_0:   9:03
Yeah, I think. I mean, we got all quite rapidly hit from that, sir, and and I think in the beginning everybody was very optimistic that it would be a sharp be recovery, and it bounces bank quickly. I seeing the reality now is that people expected will take longer how long it will take. I mean, that's difficult to say. I think it depends very much on the next. A few weeks in turns off how quickly the luck down will be released and how quickly. The only EMS and the supplication of the only EMS is able to run back because if that takes too long, some of the Let's say suppliers will go into cash issues or bankruptcy. Some dealers as well. So you will have issues all over this of 19 which will take much longer to ramp it up class like what you see in the US now and increasing unemployment rate, which will make it more difficult in terms of consumer confidence and buying new cars. So I think it will not be nine or 12 months whether it will be back in 2021 or it will take longer. I think depends a lot on the next 4 to 8 weeks.

spk_1:   10:25
Peter, looking at the recovery, Where do you think and where do you see the main focus areas for the industry? For the manufacturers on the shorter to make sure that they recover us quickly as possible next to the topics that Patrick mentioned in terms off supply chain and production back back on track.

spk_2:   10:47
Short term, I would say obviously after sales, the fact that in a lot of countries people have been in Ida self elected or forced lockdowns. That means cars haven't been running, and that means there will be some form of pent up demand on overdue servicing. At Sarah S O. There is there's that if I were a manufacturer and certainly given the fact that we know what the profit contribution from parts for the automotive business, particularly for for manufacturers and dealers means that would be an area where I would focus on, um, both towards my network but equally outside your servicing and selling parts to the independent network. The other area that I would focus on is making sure that, um, I can support, um, my dealers in sort of relaunching their business. Ah, a lot of dealers are thin stretch for margins as well, and so they might need some support there. And this can be done predominately. I think in the cash area where you are as a manufacturer, perhaps a little bit more lenient towards ah, due payments that's ever on. Guy would also make sure that I tap into the consumer base. So the owners of cars, whether they be companies, are private people. Onda make them aware that we're open for business and on get the right offerings in and chased up that volume s s to sales. I think you have to do your best, but I think every if there will be a large tendency amongst the audience to wait and see, um, when contemplating to buy a car.

spk_1:   12:53
So talk about the gun consumer. Andrea, how do you think that the consumer's reaction will be on a short on the short term in terms off desire to purchase own buying and servicing their vehicles and expectations on on, uh, what manufacturers and dealers well deliver and provided them?

spk_3:   13:17
Rob, I believe the driver here will still be uncertainty. Consumers will be on the fence about making a large investment and new vehicles for a while. Um, I don't think there's gonna be a significant impact on service. Actually, services might actually benefit from people holding on to their vehicles a little longer. Um, and maybe the used vehicle market as well. My benefit from a tendency to invest a little less. But again, the driver here is uncertainty. Well, I think you can somehow, you know, act on the supply chain disruptions that have happened, and some government programs might be able to support some of the dealers that are struggling through this downturn. I think what will be the key driver and the most important element in the growth of the market in the future and making sure that that, um there is that uptake in the in the curve? It is really consumer sentiment.

spk_1:   14:21
And and and Patrick, how do you think that manufacturers are are having the biggest challenge? Basically, in order to fulfill that, Yeah, where do you see our biggest touchpoints that manufactures need to put in place or actions that the manufacturer need to put in place in order to make sure that they recorded as quickly as possible?

spk_0:   14:46
I think that to two elements to it. One is, let's say, to recover as quickly as possible, and I think they're different angles to it. One is to create the demand, and it's more the classic of the motive game off. Let's say marketing and creating demand in the market place and and that might let's say accelerate in the short term, then after the crisis or we got over it, the demand. But I think that two things which we should not forget one is before Khurana, there was a lot of change into E. V E's that will not go away through Khurana. So that will be one angle, which will make the whole recovery even more complex because you have in the middle of that also change into that direction. And the other one is the way how you serve consumers in terms of online, in terms, off virtual deliveries, different shopping concepts. I mean, like, if you take Germany, I think Germany is always quite conservative on that, and I I was always surprised that sometimes fed up, that it's difficult to pay with Google, pay and and use cards, and you need use cash. I mean in Karachi. The whole world has changed in one week or in 10 days. I mean, you're in a small bakery, so and this will now be also you order everything's Ramos on. Why can you not half a test drive delivered? Or why can you not get your car delivered? And so there will be changed in what consumers will be mined out of the crisis

spk_1:   16:28
so it will digital process basically and more digitally supported process. That's if I hear you correctly. That's what you say.

spk_0:   16:36
And it will be in something the oe EMS were never really prepared for and which will be quite a challenge for them to change the model. How do they work with details together? What is, um, doing? What is the dealer doing? So that will be quite a challenge in that industry.

spk_1:   16:55
Yeah, I think so, too. I mean, I looking at what you said. I mean, the E V is certainly one of the areas that I think which will get a lot of attention and is already getting a lot of attention, Obviously not only driven by the consumer desire, the market trends in general, but also in terms off, creating a sustainable model moving forward. And I think everybody, every manufacturer is quite investing quite substantially into the V domain. If you look at the number of models commonplace and indeed, I think there is a big need to drive this forward and from the industry itself, but also in the supporting industry and the energy providers, the power providers as well as the government Will. Peter, is there anything from your side that you would like to get?

spk_2:   17:43
Um Well, if you look indeed at some of the drivers you just mentioned electric cars. I I don't think will be indeed anybody retrenching from that, Not even because of low oil prices that might be here to stay for a while. It might make it more difficult because the sort of the break even point for consumer is different. But the enforcement by if you look at Europe by the European legislation actually has all manufacturers get up. Teoh, look at that. Which is everything to do with the global warming, etcetera, eso uh, that will that will stay. I do think that manufacturers will next to gearing up business. Yeah, What we just talked about is will need to start looking at a different way off engaging with customers. Yeah, I think the transactional model will come much more into play. Everybody is not talking about direct sales on contact, less sills and God knows what. But if you really want to transact and deal with consumers, um, they need to be prepared for that. And manufacturers, as we all know, the traditional business model is a wholesale model whereby manufacturers sell through that dealer network and the dealer network cells on. And now the question really also starts getting into. Is that business model sustainable? Yeah, with all the fallout in demand that said about So how can I keep my dealer network up in alive and secondly, and as an alternative, because I still want to sell my parts and my service and my cars? Am I now going to set up a ah direct consumer channel, which I know and I'm layer can come into that in the U. S. Is more difficult than the than in Europe or in China. So I I will I am expecting movements in in that area as well. And oe EMS need to set themselves up to be able to transact and really switch money from the consumer's pocket directly into their bank account, which they don't have the opportunity to do. So at this very moment.

spk_1:   20:16
Yeah, I agree with you fully. I mean, we have obviously d d the short term initiatives. We just talked about that, and I think you already introduced let's say, the next focus point that we would like to discuss a little bit, which is the future. And what are Let's say the trance moving forward in terms off what your Williams should be looking for and what are the trends. And I would like to start a discussion a little bit with with a view on the consumer, because it starts, obviously, always with humor and the consumer requirements. So, Andrea, where do you see on the long term? We just talked about the shorter needs that customers have. But where do you see that long term consumers will drive towards in terms off for filling their mobility needs? With all the things that we know are Williams are investing too connected vehicle, autonomous driving, TV's etcetera, etcetera. What do you say to consumers will be looking for any mobility experience that they're investor money it.

spk_3:   21:12
There's many interesting indications rob, about how this crisis is actually impacting consumer sentiment and their behavior moving forward. Um, I was reading about some some studies, for example, and some surveys that were conducted by cars dot com that showed how consumers that were actually in the past utilising public transportation, shirts, services and shared mobility. A lot more are now turning mawr towards their own individual personal vehicle. Um, now is that a trend that will continue once the peak is over. It's something that we will need to observe, but there certainly will be an impact on the way people look at mobility moving forward. Um, I think one new element that is coming into the picture is the actual health own, because we've been talking for years about digital retailing and how dealers could make the purchase process leaner and more consumer friendly. Well, now this new element, the health is taking a prominent role in this. Consumers will not be happy to visit their dealerships any more and more importantly, to spend hours in a dealer shoot to go through the whole purchase process, which is what currently happens. So dealers and some of the more advanced dealers have already invested significantly in digital retailing. But you see that that has been a huge acceleration of the past few weeks, and you see some of the more proactive dealers focusing on other services like concierge services for service where they come, pick up your car at home and return it. So I think it's gonna be a huge acceleration in the in the digital retailing process, and I think some of the more advanced dealers who have already invested will certainly be ahead of the game in that respect. That's good.

spk_1:   23:26
All right, So you have My view is a little bit on top of that that I think that the one model retail model that has applied for let's say, the last 100 years, if you want to, is not going to be sustainable moving forward, I think we will be facing And Williams will be facing Manufactures will be facing a variety of different models to go to market. Yeah, and the one unique model, dealer based model indeed of wholesaling and the dealer being and managing the retail experience and retail relation. Consumer relation will be facing a variety of different models, which can be a more car based engagement with the driver. Yeah, in car sharing models, which can be a direct sales based models and direct service maze base model. So I think there will be a variety, and I think Peter already touched upon that. And Patrick, how do you see the development like? And they think that Williams are doing like consolidating their offer concentration off the product portfolio, maybe market presence Yeah. Global versus more local regional on a Z already indicated supply change managed in a retail. How do you see this? Basically, in the light off trance in the marketplace, the directions that Williams are taking

spk_0:   24:50
before Khurana there were huge sums which the O EMS were investing into TVs and do new concepts and hope to catch up with Tesler other competitors in the segment. And and I mean now it's getting even tougher because, I mean, Koran was eating up a lot off the cash reserves, so they have to very fast. And and I think we're what you will see is different. Only EMS reacting different. Some will try, like you say, to escape by attack and go quite extreme in one direction. You will see some consolidation in the marketplace where I thing there will be some takeovers and some will get together because they will not have enough cash to survive on their own. There are some, like now discussions between I mean the Germano ems in terms of sharing costs off TV development. I don't think there is one answer, but I think you will see a lot of momentum and oh am trying aggressively to get out of the situation by taking one path and pushing that forward. So I think something, what would have happened probably then over the last next 10 years is something what you will see now happening in two or three years.

spk_1:   26:20
So to speed up off the whole process that actually Oh, yeah, it's already intending and targeting for for many, many years.

spk_0:   26:27
Yeah, and not everybody would make that. I mean, there will be some might take a wrong angle and they will have not enough money and financial power to correct that. And that will be then the ones who will be taking over from others. So I will be quite interesting for you to three years in front of us.

spk_1:   26:50
Yes, he's appear. If you you mentioned already that the dealers are obviously today the main point of contact between the brand and consumer, and that potentially this'll could be impacted quite heavily if you look and listen to experts in the industry divert consumer it direction, engagement, dark cells, a servers deficit, vacation of sales and service channels and in direction points. Where do you think the dealer will be positioned in such scenario moving forward. Well, first, I have to

spk_2:   27:20
make the the remark that I I think the U. S is, uh, a little bit exempted from that because of the legislation. Yeah, that they have. They're making it impossible for manufacturers to actually, um, cell vehicles directly or do too much in in this arena. But if you look at Europe and China, you will see that moving forward, if only because manufacturers can get a better share and a better grip on the direct relationship. So, dealers, um, I think we'll find themselves in two ends of that one is We will see, I guess in regions like Europe and China, we will see less the retail points. Ah, perhaps the service points stay the same. But over time as electric increases, you might see some thinning down off that as well. Um, but on the other hand, it under a I mentioned this is well, if things like mobility it Sarah take off on. And there's a more dynamic usage of of cars as a mobility does device. Then I can see those kind of outlets sort of slowly migrating in that direction. Still living of after sales because, let's not forget for the time being we will have a huge number off internal combustion engine cars to be served eso I can I can see that as a picture for the dealer network,

spk_1:   29:09
actually more complex marketplace. If you want Teoh to say it like that and come back to your point that maybe Andrea, you want to comment on that? I mean, obviously, dealers nowadays the U. S. Have a speed already indicated very special position the legislation and also the the retailer SEC tress ity in the marketplace, obviously is a different foundation to start with eso, but also their dependency on the fixed operations is quite huge. Eso How do you see this development and the ability to create different business models in the market First, the maturity and the way the market is operating today with their retailer organizations.

spk_3:   29:56
Dealers have ah huge role to play even moving forward. And like Peter said, the key will be adaptation to the new consumer requirements into a new way of selling. Right? Uh, so the dealers that will thrive are the ones that will be more at trial. It will be able to leverage all the aspects of their business. Like we talked about service used vehicles Will will become, you know, even more important, moving forward. Um, they are an important part of the economy in the US We were talking about 17,000 dealers. They they employ close to three million people, and there they still play a role is part of the community is well, I feel like the consumer will still want to know and have the security off of, ah dealership close by when they have an issue with the vehicle. That's that the like, we said before the the dealers that will fry are the ones that will be able to adopt the new models more rapidly and that will be moving into digital retailing will be able to compete against some of the new disruptors that come in the market, maybe with direct sales to consumers or other business model mobility based model. So I think there's a future for four of the dealers who are more aggressive, more innovative and who differentiate their businesses to meet customer demand. They have to be prepared to change one of the things that there's a lot of talk about right now, for example, in the U. S. Is test drives. Uh, how are consumers? I mean, test drives were a huge asset in the past in the lead conversion process. And how that gonna play a role in the future? Will consumer still want a test drive a vehicle? Will there be obstacles to that in face to face three of the co bit crisis, all things that dealers are adapting to creatively and again the most. The most creative ones of the most aggressive ones are the ones that are gonna be successful.

spk_1:   32:22
I mean, if you look at it, it's all about the topic off digitization. Yeah, as much as possible. Eso There's a lot of debate at the moment going on around the human have aspect of human interaction, the need for human interaction. If you listen to experts in the field, they say, How far can we go with digitization on and processes versus the human The human interaction in in the automotive industry? In trying to convince the consumer toe by a product? How do you see this, Patrick,

spk_0:   32:56
I think you will see the variety. So where the dealers half also legally a very strong position in the U. S. They have less in Europe and even much less in China. So I think you will see also different morals coming in China much faster than in Europe and in Europe, probably faster than than in the U. S. And so you will see their different dynamics around different retail models and more direct sales and things like that. If you come out to the human words, this digital interaction, I think it depends. Also very much at first is the dealer offering something. I mean, in the end, it's it. It's around added value. If I can go online, I can all I can get it. Fine. Now the question is, if I have been in the action, human interaction with a dealer or somebody else, what is the edit value for me?

spk_1:   34:00
So you will have to see a variety of ways to go to market that says we discussed already before. So it's diversification and it's digitalization. Those are two things that we will see basically taking taking a place in the marketplace in order to make sure that day on the long term have ah, sustainable model. So we look a little bit at the shorter actions and the sort of focus to and in the face off recovery. We discussed a little bit about the more talk, long term implications and where the industry, where we see the industry, is moving towards the Patrick based on your experience and working very closely with the industry leaders. What would be your conclusion related to how manufacturers can leverage the current situation and drive towards long term sustainable business models?

spk_0:   34:50
If you look back into some of the other crisis is, you have usually a drop down, and everybody is have been shocked. But then what happens? Whether that is the Internet bubble burst in 2000 or the financial prices is that some of the trends which had started already getting, then Acela rated and much faster executed and will be also, let's say, the winner of the new reality and I think that is gonna happen in this crisis as well is starting from evey. So before the crisis, everybody started talking about TVs. If there will be a scrappage or program from the government's or an incentive plan to let's say, accelerate this industry, then it will be rather in low consumption vehicles or any vehs, which would drive the trend and the change there as well the same on virtual test drive on virtual deliveries on the digitalization. And I think the only EMS who are able to figure that out the fastest within at work, with, with things, streamlining their their set up and moving quite fast on that will be the ones let's say who will be winning in in that game. The people were trying to defend the status quo and going back to how it was before. I think we'll be the ones who will lose.

spk_1:   36:27
Andrea, do you see any specific regional differences? I mean peptic outlines, Let's say to focus areas on the main contributors to change Now what do you see that are? Do you see specific regional differences in the markets like like us, for instance,

spk_3:   36:47
think we've spoken about the US being a little more retail centric, and I think that's gonna be true in the way we adapt to the new normal as well, where a lot of the initiatives might be, Oh, am driven in Europe and in other regions of the world. I do expect that a lot of a lot of innovation will come at the dealership in at the retail level in North America. And I think that will be positive innovation ultimately, because we have been moving towards, you know, more digital processing, more customer centric approach to the whole ownership experience, from the sale to the service process. For years, you know, we've been talking about consumer needs changing for years and how we experience purchasing any good online and it being so much more streamlined and and so much easier than having Teoh go into a store. Well, I think that's been again. That transformation has been taking place gradually in the auto industry, but this is gonna be a huge accelerator, and it will eliminate a lot of the waste that's generated in the process. Again, I go back to the experience of sitting down in a dealership for four hours to purchase your vehicle. I don't think that's gonna happen in the future, Do you

spk_1:   38:14
correctly, you say enablers will be the same everywhere, but the way it's implemented executed may differ from market to market in terms of where the market is at at this point, in time. Is that correct?

spk_3:   38:25
Yes. I think that's grouped,

spk_1:   38:27
Peter, from your side that you mentioned it already. In summary. Where do you see if you if you name the top challenges that all yams manufacturers are facing together with the dealer networks in this to live in this new normal Where you where you see the focus part? It's summary.

spk_2:   38:46
I I see three main areas on and all of them impacting the retail network director your perhaps even indirectly 1st 1 is, ah, regionalization of the supply chain. With that, you will see that also supply issues might be might become different and perhaps even even prices. Yeah, because But we'll talk about less volumes that has an impact on parts prices. Andan ultimately yet cost of ownership for consumers. The 2nd 1 that I see is data. Um, I can see data which already is is key, but really starting to drive and shape thean die retail environment. Within the data, I can see the need on the ability to do transactions as as key in. The last thing is that I can see a consolidation coming into retail where oe ems ever have a need to offload their production base on get get money as they try as they yeah, move towards a more direct retailing model. They cannot live without dealers, but there might be new players in the market that want to do that now and then. The whole issue is, is how do I retain my customer relationship? And for that they need the right set up in terms with back at data and ability to execute on transactions.

spk_3:   40:22
Robbed me. I am incineration. Teoh Peter statements. I think you know, we've talked a lot about the Liam's themselves and the dealers. Um, one area that's very close on dear to us is the way the OM interact with their dealers. And I think, as the only EMS are feeling the pressure of continued spend on the R and D front, um, combined with this more difficult market situation, they will be looking at ways to optimize, uh, the way they operate and eliminate waste out of the system. And I think just like we talked about digital retail as a way for dealers to eliminate waste of system, I do think there's an opportunity for only EMS to operate with. Ah stronger digital footprint by maybe replacing some of that day to day interaction with e learning with remote, remote contacts with their dealerships. And I think that's Ah, that's a change that we will see happening over the next few months as well

spk_1:   41:32
as the world is slowly moving from shock fi extreme locked down into slow but still protective opening measures, I think we see that the automotive industry is having enormous challenges to manage encountered a shorter negative impact. But as in many crisis, there is also a unique opportunity to make paradigm shifts. Make structural changes in a business model that no doubt is under constant pressure from change. Consumer expectations and behaviour, increased pressure from new marketplace and also new possible regulations in order to secure long term sustainable industry that secures mobility for people. Thank you, gentlemen, for joining and sharing your views and sinks to everyone for listening it. Enjoy a day and stay healthy