Covid 19 - The impact on the car industry
Car production worldwide down 27% Q1 2020 because of Corona virus.
In March 2020, new passenger vehicle registrations were sharply down in most major markets in the world due to closures in response to the coronavirus. The European, Indian, and Chinese new car markets were halved. In the USA, sales were down by more than a third, while the Brazilian market contracted by a fifth. The Japanese market in comparison performed better with sales down only 9%. China was again the largest new car market in the world in March 2020.
Q1 car registrations last 3 years
Car sales (LCV & passenger cars) are likely to shrink by 3.1 million units in North America this year—and by 13.5 million worldwide—because of the coronavirus pandemic. So, says LMC Automotive. The firm’s latest outlook predicts global deliveries of light vehicles will plunge to 76.6 million units in 2020 from 90.1 million last year.
Impact will be devastating on Manufacturers. Most fabrics are closed in Europe and the US. Ford has already announced a loss of 2 billion (on Q1), Renault will require between 4 and 6 billions new loans… In this context, it is extremely difficult to manage CO2 emission objectives in Europe and even more difficult for governments to put in place the regulation and fine the industry.