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.
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.
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.“
“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.”