Automotive industry fears second quarantine

The corona crisis practically brought the auto industry to a standstill for weeks. Gradually, automakers are returning to normal operations, but the damage is great. And therefore, the industry fears a possible second "blockage".

“The pandemic is affecting manufacturers and suppliers at the stage of a fundamental change in the mobility of cars towards electrification, which in itself already requires all the efforts. After the global market collapse, the situation has stabilized for many companies. But the crisis is not over yet. Now everything must be done to prevent a new decline in production and demand,” said Dr. Martin Koers, Managing Director of the Automobile Association (VDA).

The VDA expects about 2020 million vehicles to be produced in Germany in 3,5. This corresponds to a 25 percent decrease over 2019. From January to July 2020, 1,8 million vehicles were produced in Germany, the lowest level since 1975.

“A study by VDA member companies has shown that improvement is happening every second, but suppliers believe that the absorption rate will not be reached until the corona crisis affects production in this country by 2022,” explains Dr. coers.