It will take a long time to recover

Although the domestic car factories have restarted after the coronavirus epidemic, the production volume is still well below the pre-crisis level, the G7 wrote.

The sector is also expected to run at a much lower speed in the second half of this year than before. In addition, according to the narrating companies, there are noticeable conflicts in the industry: while carmakers and suppliers closer to them complain about supply chain disruptions, others often find that multis have restarted, but do not buy from them.

It is simply not true that car factories do not produce due to supply chain disruptions. Everyone has announced that they will restart after a two to three week outage, but they are lying, they have resumed production with a fraction of the performance, in fact we are not talking about a two or three week outage, ”said an automotive supplier with nearly two hundred employees. head of the company back in mid-May.

And your opinion is not unique at all. In recent weeks, journalists have spoken to the owners or managers of ten companies operating in the sector, and several of them, albeit not so strong, have expressed similar views.

There was a market player who said he would last up to three to four months at this order level, falling by the end of June. This may happen even earlier for companies with smaller reserves and further down the supply chain.

This, in turn, can trigger a chain reaction, as if a part is missing, the entire production will stop. Hungarian manufacturers, without exception, emphasized to the G7 that it depends on customer needs how they plan to start production. So far, it is not very good news that car sales have not really started in Europe.

(Source: vezess.hu / photo: pixabay.com)