Automakers North America Europe USD100 billion - Arhive
Automakers North America Europe
Automakers in North America and Europe could lose over USD100 billion if idle until late April
MOSCOW – Lost profits for automakers could exceed USD100 billion if they do not resume production in North America and Europe before the end of April, Interfax reports with reference to the Financial Times and calculations of AutoAnalysis research owner Jan Henry.
At the same time, losses in Europe can reach USD66 billion, in North America – about USD52 billion. According to Henry, for every additional week of production downtime the industry loses USD8 billion in Europe and up to USD7.5 billion in North America. His estimate is based on this year’s production forecasts, including the launch of new models, and demand expectations. Automakers North America Europe
Earlier, the largest automakers postponed the resumption of their enterprises, which was originally planned for the end of March or April. At the same time, Nissan, Ford and General Motors did not specify the new planned deadlines. Henry does not expect a normalization of the situation until early May.
Automakers temporarily suspended hundreds of thousands of workers. Nissan transferred 6 thousand employees of its plant in Sunderland, in the UK, to a program under which the country’s authorities finance wage payments by 80%. Automakers North America Europe
In addition, GM and Ford resorted to their credit lines of USD16 billion and USD15.4 billion, respectively. German Daimler on Thursday opened a new credit line for USD12 billion in addition to the already existing 11 billion line.
Car sales in Western Europe last month fell by two-thirds, FT notes, citing statistics from individual countries. In the US, car sales collapsed in March to a minimum of 10 years. In April, an even greater fall is expected in both markets amid the maintenance of restrictive measures and the temporary closure of dealerships. Automakers North America Europe
The epidemic also led to a worsening economic situation and rising unemployment, which could negatively affect demand after the authorities lifted the restrictions. In China, sales declined by 40% compared with the level recorded before the introduction of quarantine, according to recent data.
Earlier it was reported that the Ulyanovsk Automobile Plant on April 8 began a phased launch of production and will resume assembly of cars on April 13.
In addition, the Avtotor Kaliningrad plant, which, in order to comply with the Decree of the President of the Russian Federation on March 30, stopped the production of cars and introduced non-working days at the enterprise, is currently preparing to launch the conveyor. Automakers North America Europe
Author: Anna Larionova