Automakers face over $100bn hit to revenues

The car industry’s shutdown in Europe and North America set to cost more than $100bn in lost revenues if factories across both continents remain closed until the end of April.

Lost European sales are forecast to rise to 2.6m cars, worth €66bn, while in North America they will hit 2m vehicles, worth about $52bn, if — as expected — the closures remain in force for the rest of this month.

The calculations have been made by Ian Henry, who owns research group AutoAnalysis and compiles vehicle output forecasts for Britain’s motor industry trade association, the SMMT.

Henry said each further week that European sites closed would cost the industry an additional €8bn in lost production value. In North America, the figure would be up to $7.5bn.

Every primary European and North American plant closed after carmakers shuttered sites last month to protect workers and because of falling demand levels.

As the coronavirus outbreak intensified in Europe and North America, the auto industry took the unprecedented step of shutting down factories on both sides of the Atlantic