Car plant shutdowns may cost auto industry more than $100 billion: Report

WION Web Team New Delhi, Delhi, India Apr 06, 2020, 06.56 PM(IST)

FILE PHOTO: New Land Rover cars are seen in a parking lot at the Jaguar Land Rover plant at Halewood in Liverpool, northern England, September 12 , 2016. REUTERS/Phil Noble Photograph:( Reuters )

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Assembly lines ground to a halt in March as the lockdown across Europe disrupted global supply chains, and analysts predicted large falls in demand in all key markets.

The continued closure of car plants across Europe and North America will cost the auto industry more than $100bn (£82bn) in lost revenues if the shutdown lasts until the end of April, according to a report

All major European carmakers have suspended production because of disruption caused by the spread of the coronavirus and if this continues as expected until the end of April, this will account for $66bn (£54bn) in lost sales in Europe or 2.6m cars, the report added.

In North America, this will account for 2m cars, and lost sales of about $52bn (£42bn).

The calculations have been made by Ian Henry, the owner of the consultancy AutoAnalysis, who produces forecasts for the industry body, the Society of Motor Manufacturers and Traders (SMMT).

Assembly lines ground to a halt in March as the lockdown across Europe disrupted global supply chains, and analysts predicted large falls in demand in all key markets.

All volume manufacturers from BMW to Toyota and Nissan to Jaguar Land Rover sent their workers home after the worsening outbreak on the continent led companies to examine the health implications for their workers.

The story was repeated across North America as the Detroit carmakers, including General Motors, Ford and Fiat Chrysler, shut down their plants.