October was the thirteenth month in succession in which production of passenger cars at German assembly lines was down year-on-year, Kallanish learns from automotive association VDA.
From January through October, production totalled 2.8 million units, a massive -30% down on the first ten months of 2019. However, the gap has become noticeably narrower, with output in October only -2% down on-year at 382,300 units built. In September, the y-o-y decline was still -9%.
Observers from the strip steel market in particular believe that carmaking plants are intensely compensating for the losses incurred during the strict lockdown after March when Covid-19 had broken out in Europe. However, some argue that the pace of car production might be reduced again, given the overall economic slowdown brought by the second lockdown.
Meanwhile, automotive suppliers are standing “with their backs against the wall,” says ArGeZ, the working group of automotive suppliers within the association of steel and metals working companies, WSM. According to ArGeZ, automotive suppliers are facing a year-on-year production drop of -25% in 2020.
