Worldwide vehicle production “down 20%” in 2020
Global vehicle production was supposed to hit 89 million units in 2020. The corona crisis and the recession that is likely to follow could shave off 20%, leading to a total of just 71 million.
That steep decline, far greater than anticipated earlier this year, likely will cost global automakers 19 million units in lost production in 2020, according to LMC Automotive, an auto industry analyst.
- In North America, production remains shuttered at least through April. OEMs have had to delay the launch of the Tesla Model Y and the Ford Mustang Mach E, among many other models.
- China, on the other hand, has already restarted most of its automotive production. The country expects to limit the decline in new-vehicle sales for 2020 to 12%.
- Vehicle sales in both Europe and North America are predicted to bottom out in April, but LMC predicts a slower recovery than in China.
- Other regions are also likely to be affected deeply by the pandemic and the ensuing recession.
LMC foresees an upturn in automotive sales from the end of the year, but warns of darker times ahead – the company says that its prediction of -20% production (18 million vehicles produced less) may turn out to be too optimistic, and may have to be revised further down.