2020 will be another difficult year for the European automotive industry. Not only because of the coronavirus but also concerns about whether customers will start buying electric cars from the beginning of 2020.
The COVID-19 epidemic has mercilessly exposed the weaknesses in the supply chains of many large enterprises. However, in recent years there have been other cases that should have prompted the companies to change.
Polish Tier 1 and Tier 2 suppliers of automotive parts are experiencing a slowdown in German exports. On the other hand, sales of components to other countries are increasing. In 2019, German automotive sector production decreased by 9 per cent.
Beijing-based Global Times and some Western media have called the coronavirus a "black swan" — a completely unexpected phenomenon that will cause great damage to the Chinese and world economy. If the epidemic spread around the world, it could cause not only great human casualties.
In December 2019, Slovakia posted lowest GDP growth increase since 2013. The central European country has been affected by decreasing foreign demand. With the global slowdown of the automotive sector, experts warn of overreliance on car-production in Slovakia.
People across the world are slowly but surely swapping their car keys for a phone app. Although European cities are lagging behind their Russian and Asian competitors in terms of car sharing fleet size, the service is on the rise in the old continent.
South Koreaʼs Bumchun Precision plans to build a HUF13.3bn (EUR41m) plant supplying parts for electric cars in northern Hungary. The Hungarian government will provide HUF2.65bn for the construction of the plant, which will create 200 jobs.
In the conditions of weakening international trade, the increase in sales to Germany proved to have a positive impact on the growth of Polish exports in 2018. This was largely due to factors not related to demand.