COVID-19’s Impact on Auto IndustryBy Alejandro Enríquez | Fri, 03/13/2020 - 12:29
COVID-19 has raised concern among car manufacturers in the country after the virus forced auto part manufacturers to cease operations in some Chinese regions. Mexican manufacturers have said they have enough stock to endure until the end of March. Past this point, production might be compromised. Manufacturers throughout the world have asked their governments for extraordinary measures. In the US, the National Association of Manufacturers asked for tariffs to be suspended. Meanwhile, China suffered a 79 downfall in car sales and is asking the government for financial strategies to cope with this.
COVID-19, however, has not stopped the electric revolution. Tesla surpassed Boeing in market capitalization, while Porsche continues developing a high-speed charging network in Europe. In addition, Volkswagen said it is exploring new business units in energy storage.
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COVID-19’s Effects in the Mexican Automotive Industry
- Volkswagen’s facility in Puebla maintains regular operations despite a confirmed case of COVID-19. Meanwhile, in Guanajuato, eight employees were isolated to be tested for the virus.
- Mexico’s car production is at risk as COVID-19 hits Chinese suppliers. Stocks are likely to deplete by the end of March.
The Global Impact of COVID-19
- Global car sales will fall 2.5 percent in 2020 due to COVID-19, Moody’s says.
- China’s automotive industry seeks government relief measures after a 79 percent downfall in sales.
- Auto part manufacturers in Hubei province will resume operations shortly, the Chinese vice industry minister said.
- US National Association of Manufacturers asked Trump for extraordinary measures to suspend tariffs amid the COVID-19 outbreak.
The Electric Revolution Continues
- Tesla surpasses Boeing in market capitalization. Elon Musk’s company reaches the US$116.9 billion mark.
- Porsche develops high-speed charging points throughout Europe. These will be compatible with any brand and electric model and will provide energy for a 100km ride in just 5 minutes.
- Volkswagen plans to tap into electric car batteries to compete with power firms. The company explores new business units as energy storage becomes an attractive market. Meanwhile, it hopes new software will prevent all accidents by 2050.