The Covid-19 outbreak is triggering an economic slowdown for which the consequences for Spanish industry remain unclear, the Spanish automotive association, Anfac warns. Nearly 90% of the large companies in the industry have begun implementing temporary lay-offs since 16 March, Kallanish notes. Industry sources are demanding urgent measures from the Spanish government to prevent further economic hardship and mitigate significant layoffs during the crisis facing the country.
The Spanish automotive industry has seen more than 100,000 direct jobs affected, as a result of the temporary lay-offs implemented by Seat, Renault, Nissan, PSA Group and Mercedes production plants in Spain.
“The coronavirus crisis is impacting the automotive sector with the same severity as the other industrial sectors in Spain. There is uncertainty surrounding the scale of collapse in the supply chain, as well as to how the automotive sector will react when the economy began to recover,” analysts say. Sales of vehicles in Spain might drop by more than -70% year-on-year in March, industry sources estimate.
“The automotive sector has closed the vast majority of its production plants. This paralysis has also a direct impact on the manufacturers of parts and components, and indirectly, on the chemical sector, for which 20% of activity relies on the demand from the automotive sector,” market analysts add. According to Anfac, the automotive industry represents 10% of Spain`s GDP.
