Coronavirus pandemic has brought the worst economic slump in the world and hence affected numerous industries. The automotive sector is one of them, and car manufacturers have either totally shut down their plants following the orders issued by local governments or are running with minimal staff at production units to keep their personnel safe. Several auto manufacturers have surplus stock of vehicles that can’t be sold due to the current situation. Not to mention, the majority of motorsport events/exhibitions are either canceled or postponed around the globe.
Here is some global auto manufactures that have been impacted the most due to the Covid-19 pandemic.
Toyota Motor Corporation, a Japanese multinational automotive, expects its profits to fall by 80 percent. They forecast a sharp drop in sales and operating profit over the next few years as the car giant suffers from the severe and significant fallout from the coronavirus pandemic that has shredded the global auto market. Toyota, have factories located in Europe, Japan, the US, and China temporarily suspended its operations earlier this year due to the Covid-19 pandemic. It expects sales to have a sharp decline of 19.8 %, which is approximately ¥24 trillion in the current year.
Volkswagen, the German automaker, observed car sales and operating profit plunge at the start of the year as the coronavirus pandemic resulted in the closure of dealerships that led the production to cease. Although the company claims it had plenty of cash reserves to weather the storm and is thinking of making a profit for the overall year. In May, the German automaker has now started production in two of its plants. After around five weeks of the shutdown, sales and deliveries of new cars in Europe have virtually dried up since most dealerships in Europe are still not operational.
Tesla, the American electric automaker was able to avoid a loss in the first quarter of the year car sales despite coronavirus-related shutdowns in the US and China. But losses are expected to be brutal in the second quarter as the world stays at home to suppress the spread of coronavirus. It is being reported that the American automobile company has been permitted by the authorities to resume production as the company plans on not halting its expansion, including introducing the Model Y in China and developing a factory in Germany.
Ford Motors estimated its first-quarter loss at a whopping $2 billion and claims it would ask the debt markets to inject its cash reserves as the coronavirus pandemic pummeled vehicle sales and halted production. Ford’s vehicle sales fell a sharp 21% in the first quarter, compared to last year’s product sales. However, Ford motor co will resume production in plants that are situated in the UK in Dagenham and Bridgend on 18 May onwards.
The Japanese automobile company Honda Motor Co. saw themselves deeper into losses for the first quarter that ended in March. The devastating damage to the industry from the pandemic reduced sales and crippled production of the Japanese car manufacturer. Honda reported on Tuesday a January-March loss of $276 million.
Honda, which also produces motorcycles, did not come forward with forecasts for the current year due to uncertainties.