Coronavirus shutdown to cut Europe, Americas auto production by 1.44 million: IHS Markit

(Reuters) – As carmakers grapple with growing signs of coronavirus damage, vehicle production could be reduced by about 1.44 million in Europe, North America and Latin America, according to an estimate by information provider IHS Markit.

Automakers across the world have announced plans to idle factories as they conduct additional sanitation and cleaning procedures, raising concerns that extended periods of downtime could significantly hit the companies’ profits.

The stoppage of work would cut European auto production by over 880,000 units, considering plants are shut for an average of 13 working days in the region, IHS Markit said on Friday.

North America car production is likely to be curtailed by 478,000 units, factoring in an average downtime of six working days, while output in Brazil and Argentina combined would be hit by about 80,000 units, assuming closures between eight and 15 days, the firm said.

“Even if production does only halt for the announced periods of time, the assembly ramp-up phase that follows will cause further impacts,” said Henner Lehne, vice president, global vehicle group, IHS Markit.

About 89 million light vehicles were produced globally in 2019, according to IHS Markit.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.