FCA, PSA And Renault-Nissan Among Carmakers Risking Production Hits

Chances remain slim for a strong recovery within the automotive industry this month, as assembly plants continue to operate with limited output.

However, while the coronavirus pandemic has affected every single carmaker, some are hurting more than others according to LMC Automotive, who is forecasting that global auto production will fall by 20% to about 71 million vehicles.

“This is a far deeper shutdown process in Europe compared to China,” said LMC analyst Justin Cox, noting that European production was down by 90% in April.

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It’s carmakers with more capacity in China, where the lockdowns were shorter than in the rest of the world (and mostly focused on the Hubei province), that fared better than those heavily invested in North America, Europe and India.

Because of the shutdowns, global plant utilization rates will reportedly fall by 14% in 2020, from just over 60% to roughly 46%.

Major carmakers such as FCA, Renault-Nissan and the PSA Group could register major production hits moving forward. FCA for one may lose 29% of its annual production because of its heavy presence in Italy and North America, as reported by Autonews Europe.

Meanwhile, Renault-Nissan is expected to lose 25% of annual production, with PSA (heavily tilted towards southern Europe) facing a possible decline of 24%.

Other carmakers likely to do worse than the industry average are Ford at 23% and Honda at 22% – although none will lose as much as Suzuki, which can expect a 33% drop in terms of its annual production.

As for brands expected to fare better than the industry average, LMC counts China’s SAIC (15% drop), GM (15%), Hyundai (16%), BMW (18%), VW Group (18%), Daimler (19%) and Toyota (20%).