Automotive production in Europe is currently being hard-hit by the spread of coronavirus and the consequent stoppages at factories across the continent. ACEA, the European automobile manufacturers’ association, calculates that the loss of production is expected to surpass 1.2 million vehicles, including cars, vans, trucks, buses and coaches.
Plants are being shut down for around 16 days on average across Europe, ACEA says. The association notes that production losses could increase if stoppages are further prolonged.
The biggest impact should be in Germany, the largest automotive producer in the continent. Germany should lose production of some 360,000 vehicles due to the stoppages. The second most-impacted market will be Spain (237,000 vehicles), followed by France (113,000 vehicles).
According to the European steelmakers’ association Eurofer, the automotive sector accounts for 18% of total steel consumption in the region. After a challenging 2019, automotive production was expected to grow by around 1% y-o-y in 2020, this outlook is set to be dramatically revised downward in the coming weeks, Kallanish notes.