There is no doubt that 2020 will be a year to forget for the automotive industry. And, unlike other crises that have hit this sector, this time the production and sale of vehicles was paralyzed for several weeks.
To this we must add that marketing has seen a drastic decrease in the months following the suspension of production by manufacturers and suppliers.
Obviously, this blow to the industry has caused hundreds of millions of dollars to be lost, while thousands of jobs have been lost. The most complicated thing is that this crisis will not only be in 2020, but also in 2021.
In Europe alone, the automotive industry will lose more than 100,000 jobs in 2021 due to the consequences of the crisis caused by the coronavirus, according to the forecasts of the European Association of Automobile Suppliers.
According to the forecasts, of this total of jobs lost in Europe in the automotive industry, some 50,000 jobs will be eliminated in the auto parts supplier companies.
At the same time as the job loss, the automotive sector is also being forced, due to the pandemic, to reduce their investments in Research and Development, which will have a negative effect on their position when it comes to meeting new environmental and digital challenges.
Today, car manufacturers’ suppliers provide direct employment 1.7 million people in Europe, in addition to 1.2 million employees of vehicle companies.