Kecskemét Mercedes plant confirms "saturated" production programme - week 9 2020
Fotó: Mercedes-Benz
Volkswagen resumes production in China, while Toyota prepares for outages in Japan. Fiat not yet forced to halt production despite major surge in coronavirus cases in Italy. Lotte Aluminium Kft. announces project to build anode foil plant in Tatabánya. Let’s recap what last week brought in Hungary’s automotive sector. Clicking on the highlighted items will open the full stories.
“Even though the automotive industry is experiencing a challenging period, the Kecskemét-based Mercedes plant’s production programme is fully saturated for the entire year.” “This is a clear message to those who are constantly speculating about the future of the Kecskemét plant,” Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary Kft., said at a joint press conference held by the plant and distributor Mercedes-Benz Hungária Kft.
Tatabánya is becoming an electromobility hub: South Korean anode foil manufacturer Lotte Aluminium Kft. has announced to build a new parts factory with a HUF 44 billion investment.
Although Volkswagen has resumed manufacturing activities at most of its China-based plants, logistics difficulties continue to hinder production. Toyota hasn’t been so lucky, as stoppages caused by the coronavirus on the Asian continent could affect the manufacturer’s Japanese operation, prompting the company to prepare for potential outages.
The coronavirus is leaving its mark on the Italian GDP: Confcommercio, the Italian General Confederation of Enterprises, is expecting a 0.3-0.4 percent decline in the country gross domestic product for 2020.
The Geneva Motor Show has been cancelled after the Swiss government had issued a ban on mass activities with more than 1,000 participants expected.
Although no specific data has been disclosed as of date, VDA, the German Association of the Automotive Industry, is expecting severe damages in the automotive industry induced by the coronavirus. Measures to prevent the spread of the virus are already felt in sales volumes. Moody’s has slashed its global vehicle sale forecast due to the coronavirus outbreak reducing demand.
Projections predict economic decline in China, Italy and even Japan. The Japanese GDP could decrease by as much as 2.2 percent in the current quarter. If expectations materialize, Japanese GDP could continue to decline in the second consecutive quarter.
While Bosch is planning investments, every other German supplier is announcing layoffs. More than half of all Germany-based automotive suppliers are planning to downsize, and not just due to the global economic slowdown. According to a report by the German-Hungarian Chamber of Commerce and Industry (DUIHK), investments are being delayed due to uncertainties around the electric transition.
After a prolonged period of negotiations, the United Kingdom has finally left the European Union. A transition period is in effect until 31 December 2020, which could be further extended by another two years. Although negotiations between the UK and the EU are expected to continue through the end of the year, customs-free trade between the the UK and the EU will most likely be terminated on 31 January 2021.
