Many car factories in the European Union (EU) have been closed to curb the spread of the corona virus. The closures are leading to a substantial loss of production in the sector; over two million fewer cars have been produced so far.
This is according to figures from industry associations ACEA, which depicts on an interactive map the impact of the corona virus on production in the automotive sector. So far, measures related to the corona virus have resulted in 2,068,832 fewer cars being produced. Zooming in on the Netherlands, this is an estimated 26,986.
Closed for an average of 26 days
On average, factories close for 26 working days. In the Netherlands, factories in the automotive sector close for an average of 22 days. ACEA points out that many car factories are currently still closed. The longer this remains the case, the bigger the impact on production grows.
Click on the map to open the interactive version
Not surprisingly, the impact on the German automotive industry - the largest in the EU - is the greatest. Our eastern neighbours have seen 553,767 fewer cars produced so far due to the coronavirus. Spain follows with 379,012 units and the UK with 167,144.
Employment also falls
ACEA is also looking at the impact on employment in the sector. This is estimated to fall by 1,138,536 due to measures related to the coronavirus. In the Netherlands, 13,500 jobs are at risk. Germany is again the hardest hit with 568,518 workers affected. France follows with 90,000 and Italy with 69,382 employees.
ACEA stresses that this is an estimate based on various sources, including research firm IHS Market, automotive information platform MarkLines, national industry associations and (public) announcements from manufacturers. The figures are intended only to paint a picture of the impact of the corona virus on the European automotive sector.
'Unprecedented crisis'
The European trade association earlier warned that the European automotive industry is on the brink of an unprecedented crisis. This crisis could have a huge impact on the sector. ACEA is therefore calling on the European Union to provide financial support to automotive companies, suppliers and dealers.
ACEA president Eric-Mark Huitema spoke of the worst crisis to ever hit the automotive sector. "With all production coming to a halt and the retail network effectively closed, the jobs of some 14 million Europeans are at stake. We call for strong and coordinated actions at national and European level to provide immediate liquidity support to automotive companies, their suppliers and dealers," Huitema said.
Call to action
Specifically, ACEA called for two actions:
- taking concrete measures to prevent 'irreversible and fundamental damage to the sector permanent loss of jobs, capacity, innovation and research capability'.
- preparations to boost the recovery of the European automotive sector, contributing to an accelerated recovery of the European economy as a whole, according to ACEA.
Author: Wouter Hoeffnagel
