Something that interested me was how is the car salesman business handling managing stability during the challenging times of Covid. My Dad currently works in the car salesman business so I did some research. There is a 3 step process to the way cars are manufactured and sent to car salesman companies. The first step is the allocation phase where the cars a being manufactured and prepared to ship to the company location which takes a 6 to 8 weeks for that process to occur. Secondly, there is the F status phase which is the process of the cars being transferred to dealerships, and then the ground phase or the G phase which is a 2 to 4 day process of the cars being put on the lot or in stock. What started to happen during Covid was that more people wanted to buy more cars and the cars started to decrease from stock.
Following this, people started to reserve cars from the allocation phase( the cars being manufactured) so that when the cars come in they would have already bought it. The issue that brought up was that if there were not any cars that the buyer would want on in stock, they would reserve, forcing the manufacturers to go into overtime with making the cars because a lot of them were already being bought before they get manufactured. Due to this constant struggle, the salesman companies decided to raise the prices of the cars of course, to manage the pace of the cars being sold. Will this keep the salesman companies alive? or will some shut down in the near future?