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Manufacturers in trouble

The coronavirus epidemic could cause enormous damage to the automotive industry: the longer factories stand, the greater the loss will be.

Experts estimate that carmakers could lose more than $ 100 billion in revenue if they are unable to resume production at their plants in Europe and North America shut down by the end of April due to the new corona virus epidemic.

Ian Henry, owner of the UK center for AutoAnalysis industry analysis and forecasting, told the Financial Times that they calculated that European manufacturers could lose $ 66 billion due to the loss of 2.6 million cars and North Americans could lose 2 million cars, or $ 52 billion. dollars could fall by the end of April.

This estimate is based on production forecasts to date for 2020, including the launch of new models and expected demand developments.

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All major European and North American automakers suspended production during March to protect workers ’health and a drop in demand. And a number of companies have postponed the resumption of production, which had previously been planned for late March, early April. Japan's Nissan and U.S. manufacturers Ford and General Motors have said only that their plants will remain closed indefinitely.

The cessation of production means an additional $ 8 billion loss in carmakers' revenue in Europe each week and $ 7.5 billion in North America. Ian Henry believes that the situation is not expected to return to normal before May, and that is also the earliest date.

In Western Europe, new car sales fell by roughly two-thirds in March, and in the United States it fell to a ten-year low. And April will bring even more severe losses due to restrictions on consumers' freedom of movement and the forced closure of car showrooms.

Although new car sales may jump after the lifting of severe restrictions, consumers are likely to realize only a portion of the deferred purchases as the unfavorable economic and unemployment situation expected after the epidemic will dampen demand.

In China, virtually no one bought a new passenger car at the most serious moment, and the latest available data also show that new car sales are 40 percent lower than pre-coronavirus levels.

(Source: vezess.hu / photo: pixabay.com)

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The player protection website of LVC Diamond Kft., which operates Las Vegas Casinos and the Vegas.hu online gambling and sports betting platform, has been renewed, ezcsakjatek.hu. Visitors to the site can now test themselves to see if gambling is really just a game for them.
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