Coronavirus shutdown to cost European car industry £29bn

It's estimated that the production stoppages due to the coronavirus will cost European car manufacturing plants up to £29 billion.

Coronavirus factory closure costs manufacturers up to £29billion

Car manufacturers have responded to the coronavirus crisis with plant closures and production stoppages.

Now, data and analytics firm Globaldata has forecast what the total cost to the European car industry could be.

It says the short-term cost could be as much as £29 BILLION.

ALSO READ: Coronavirus lockdown: Can you still drive your car?

Currently, 95 of the total 103 production facilities for light vehicles in Europe have announced stoppages in response to the COVID-19 crisis. The rest are expected to follow. 

Bentley carbon neutral factory

Its estimated that around 1.3 million light vehicles will have been removed from production in the six-week period leading up to 26 April 2020. 

“That’s the equivalent of what four average-sized car plants would expect to manufacture in a year,” said Calum McRae, automotive analyst at GlobalData.

“Taking the average value of a new car at some £22,000, it amounts to £29.3bn in lost revenues. Our analysis shows how the short-term costs to the industry mount up over a six-week period.“

Nissan Juke production in Sunderland

ALSO READ: Do I still need a car or motorcycle MOT during the coronavirus crisis?

“This crisis is a negative-sum game across all industrial and consumer sectors and walks of life and the numbers could be set to become a whole lot worse before they become any better.

“It is presenting an economic crisis few expected to see again in their lifetimes after the 2007/8 global financial crisis.”

Other motoring developments in the UK in the in the face of the coronavirus crisis include drastic cuts in fuel prices, and the postponement of driving tests and speed wareness courses

NOW READ: Coronavirus: How to keep your car disease-free

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Ethan Jupp
Ethan Jupp
I'm Content Editor at MR. Road trips music and movies are my vices. Perennially stuck between French hot hatches and Australian muscle cars.

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