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Up to 2.0% of SEE workforce may feel negative impact of Covid-hit automotive sector - study

Author SeeNews Team
Up to 2.0% of SEE workforce may feel negative impact of Covid-hit automotive sector - study Dacia, Romania Author (Dacia) License: all rights reserved.

SOFIA (Bulgaria), April 23 (SeeNews) - Up to 2.0% on average of all employees in the national economies in Southeast Europe (SEE) could be affected by the crisis induced by the cornovirus pandemic in the automotive sector alone, according to a report published by SeeNews on Thursday.

Operating revenue in the automotive industry, which is among the hardest-hit by the Covid-19 crisis, is expected to fall dramatically, as the aggregate losses for the region's automotive sector could exceed 8 billion euro ($8.6 billion), according to estimates of the authors of the report entitled, Locked-down champion: SEE’s automotive sector in times of pandemic.

Τhe Romanian Association of Automobile Manufacturers (ACAROM) has estimated that the country’s car assembly and automotive parts manufacturing industry lost 124 million euro per each day of discontinued operations. If expectations for gradually resuming production activity in the beginning of May 2020 come true, this means a net loss of revenues of up to 5.0 billion euro in Romania alone as a direct consequence of the halt, the authors of the report note. Additional losses, probably exceeding the above mentioned immediate direct losses, will be incurred from the ongoing effect of evaporated demand by the end of the year.

"Given the geographically uniform effect of the Covid-19 crisis and the simultaneous actions and measures taken by the major players in the SEE automotive sector, we can assume that the distress on regional level will have proportions similar to those in Romania," they add.

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($ = 0.926887 euro)