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Autogarantas enhanced and lengthened


car Manufacturers are increasingly suffering because of the pandemic.

Autogarantas enhanced and lengthened

In the automotive industry due to pandemic coronavirus demand falls by tens of percent, and the extension of the stop working of most plants in Europe and North America, leading to billions of dollars in losses. Despite the support measures developed by governments of different countries, the situation remains difficult and, among other things, could lead to large reductions.

during the month of March, many global automakers have temporarily suspended production at most of their plants or even close them (for example, in Europe and North America). In the conditions existing in many countries, quarantine measures, the demand for cars fell sharply. So, in the Italian and French car sales in March dipped most significantly by 85% and 72%, respectively, in Spain to 69% in the UK — 44%. Rating Agency Moody`s forecasts lower car sales for the full year by 14%, the biggest drop will be in the European market by 21%.

the Current situation has a strong financial pressure on the company. According to the forecasts of AutoAnalysis, the world's automakers will lose at least $100 billion in revenue, when the quarantine will continue until the end of April. The company has estimated that each additional week of downtime of the plants in Europe will cost the automotive industry at €8 billion, and in North America of $7.5 billion if the plants did not resume until may 1, the company will lose the potential revenue of €66 billion in Europe and $52 billion in North America.

According to analysts JP Morgan, the second quarter will be for automakers, especially heavy manufacturing in Europe, North and South America and China will be reduced during this period by 19%. The Bank had previously forecast a decline of 9%.

opening the factories in the near future is not expected. Automakers, first awaiting the stop working for a few weeks, increase the time. So, Ford originally planned to open several factories in North America since the early to mid-April, delaying the resumption of their work and the opening of the European factories of the company had moved to 4 may. According to the American Alliance of automotive innovation at the end of March did not work 93% of all production capacities in the automotive industry in the U.S. and 80% in North America overall, open was only 14 automotive plants in the region. Last week, Japanese automaker Subaru, previously suspended most of its plants, announced to stop the last of them and on the extension of the pause in the work of their enterprises until the second half of April or beginning of may.

Brands in different countries asking for support. In mid-March, American manufacturers of cars and components has asked the government to provide tax incentives, including various tax deductions and credits for payments to employees. A letter to the authorities asked the Alliance of automobile innovation and the Association of manufacturers of engines and other equipment. Ford plans to submit to the Congress a package of measures to stimulate the automotive industry.

last week, the heads of Volkswagen, BMW and Daimler held a telephone conversation with German Chancellor Angela Merkel they discussed the conditions under which work may be resumed, and agreed to establish a working group which will prepare working standards in the context of the epidemic. Measures to support the automotive industry and prepare the EU authorities. Despite this, according to experts, it is likely that automakers will have to resort to layoffs. on to forecasts of the Director of the research center of the automotive industry at the University of Duisburg—Essen Ferdinand Dudenhoffer in Germany alone in the automotive industry because of the pandemic, is threatened more than 100 thousand jobs.

Chinese automotive industry, survived a strong decline in February and March (in February car sales, for example, declined by 79%), in contrast, begins to recover. The production is totally or partially resumed, Nissan, SAIC, Daimler, Toyota, VW and others. However, according to forecasts of research company IHS, Markit, this year car sales in China will be 9.9% lower than in the past, China Association of automobile manufacturers also expects a decline, though less significant, at 5%.

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