EAMA: Virus brings major impacts for Europe's auto industry
Europe's car industry is undergoing major disruptions from the COVID-19 crisis. With fewer people travelling and 'lockdowns' in place across the continent, demand for new cars, as well as workforce availability, are both suffering.
The European Automobile Manufacturers' Association (EAMA) has issued an update regarding the state of the auto industry in Europe during this difficult time:
The production of motor vehicles has come to a sudden halt in most of Europe, causing serious disruptions for companies and employees. We estimate that the jobs of at least 1,100,000 Europeans working in automotive manufacturing are affected by factory shutdowns to date; this figure only refers to those people directly employed by car, truck, van and bus manufacturers – the impact on the wider automotive supply chain is even more critical;
Economically, our data shows that EU-wide production losses due to factory shutdowns amount to at least 1,200,000 motor vehicles so far. This figure is likely to increase if shutdowns have to be extended or additional plants are brought to a halt. This will of course have a massive impact on the revenues and turnover of automobile manufacturers. In addition, looking at the long term impact, we are not expecting post-crisis sales to salvage the situation. The economic impact of the pandemic on EU citizens will be long-lasting, and vehicle purchases will not be a number one priority for consumers in the wake of this crisis.
As is the case with many other businesses, our member companies are already suffering significant economic repercussions, which could cause permanent damage to some of these companies.
For these reasons, we are closely monitoring the situation. To share the information we have collected so far, we have created a dedicated section on our website that will be updated regularly. It currently includes:
- A series of interactive maps which reflect the impact on production and employment in the different EU member states plus the UK;
- An overview of measures taken by the EU to support the European industry throughout the crisis;
- A copy of the letter we sent to the President of the Commission
For further information, please see this information page on the EAMA website.