Minus 1 million people. This is not the limit: mass reduction in the automotive industry


The suspension of the car companies in Europe to pandemic coronavirus infection COVID-19 led to a sharp reduction in the number of jobs in the sector: at least 1 million people were fired or transferred to a shortened work schedule, the newspaper Financial Times, reports Fixygen.

According to the European Association of car manufacturers (ACEA), the suspension of work of enterprises in the sector, which averaged 16 weeks, resulted in a loss of production equivalent to 1.2 million cars.

“Car production in Europe has actually stopped – this sector has never been before,” – said General Director of ACEA Eric-mark Witham.


Volkswagen CEO Herbert Diess said that the German automaker can “get off easy fright” if epidemiological crisis “will be overcome as fast as in China.” “We can just restart the economy, when the pandemic is brought under control. When the number of new infections will decline,” – said Diss.

However, in ACEA, who called last week to provide additional liquidity automakers, believe that the crisis in the sector will increase as companies are forced to suspend more and more capacity. Implications for suppliers of car manufacturers may be “more serious” is noted in the ACEA.

In Germany almost 570 thousand workers in the automotive industry translated into reduced working hours with a saving of up to 67% of salary. In France, a similar situation is 90 thousand workers in the sector in the UK – more than 65 thousand

BMW on Tuesday said that poison on unpaid leave 20 thousand employees. Earlier Daimler announced translated into reduced working hours 170 thousand people in Germany, Volkswagen – 80 thousand employees.


McKinsey experts believe that the global automotive sector will face a deeper recession than in the period of crisis of 2008-2009, predicting the fall of both European and American automotive markets by 30%.

ACEA represents the 16 largest producers of cars and trucks.

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