Factories closed, jobs eliminated, projects frozen, equipment manufacturers at a standstill: the automotive market is among the main economic victims of Covid-19 and the population containment measures. A historic crisis for this sector, “the most serious in its history“, according to Eric-Mark Huitema, Managing Director of the European Automobile Manufacturers Association, even if some scenarios for ending the crisis are already being considered.
As part of the fight against the Covid-19 epidemic and following various public health measures, car dealerships, a “non-essential” trade, have had to announce their cessation of activities in a hurry.
Caught in a vice, the automobile market has been experiencing a supply and demand shock for several weeks. “This is historic. We’ve never had a downturn like this, we’re half a month short,” commented François Roudier, spokesman for the French Automobile Manufacturers’ Committee, dramatically.
Demand in free fall
Exceptional population containment measures decreed in the various European countries have been preventing any sales operations for several weeks now.
Alarmed, experts estimate that 14 million fewer cars will be sold worldwide in 2020, whereas by way of comparison, sales had fallen by only 6 million after the subprime crisis in 2008.
This article is reserved for subscribers.
Subscribe now!
