Due to shortages and rates
The energy crisis could limit European car production by up to 40 percent in the near future, S&P Global Mobility reports in a report called ‘Winter is Coming’. Both energy shortages and excessive energy prices can lead to temporary production stops.
Market researcher S&P Global Mobility predicts that the European car industry in particular will be hit hard by the energy crisis. While S&P previously expected European production of 4 to 4.5 million cars per quarter for the coming period, S&P already predicts a strong reduction from this quarter (Q4-2022). This was previously deployed due to the corona restrictions and chip shortages, and is now increasing further due to the energy crisis.
According to the agency, European production could fall to between 2.75 and 3 million cars per quarter. Moreover, that reduction could just continue throughout 2023, according to S&P. Where previously the energy costs per car produced were around €50, that amount has recently increased to between €687 and €773 per car. As a result, car manufacturers may stop production because producing cars is simply no longer profitable. This could happen especially at smaller factories, according to S&P. In addition to high energy prices, possible energy shortages also play a role in the forecast – especially if the winter turns harsh.
Although production costs in Europe are rising faster than elsewhere in the world, partly because of the previous dependence on Russian gas, the consequences will be felt everywhere. Many parts that are also used in factories on other continents are produced in Europe. The factories that produce those parts are of course also affected by the energy crisis. Worldwide, the long delivery times for new cars are not expected to decrease for the time being.
– Thanks for information from Autoweek.nl