Global automotive industry lost billions to COVID-19
The coronavirus crisis cost the automotive industry billions of dollars worldwide and inflicted heavy losses on companies, according to a study by the EY consultancy group.
It found that operating losses among the world’s 17 biggest carmakers amounted to almost 11 billion euros (12.9 billion dollars) in the second quarter of this year, when restrictions to stem the pandemic took their toll on the global economy.
In the same period last year, there was a combined profit of almost 22 billion euros. Only six manufacturers managed to stay in the black, with U.S. e-car company Tesla even managing to post a yearon-year improvement, allowing it to jump to the top of the rank as the most profitable automaker, EY said.
The study, however, said that no carmaker was able to avoid falling revenues in the second quarter.
According to the study, combined earnings amounted to just under 177 billion euros; plunging by 41 per cent compared to the second quarter of 2019.
However, this also varied significantly depending on the company, with Tesla’s revenue down 5 per cent while Japan’s Mitsubishi saw a 57-per-cent drop.
Germany’s auto giants: Volkswagen, Daimler, and BMW, ranked in the middle with revenue falling by 37, 29 and 22 per cent, respectively.
“We have never seen such a collapse in revenue, profit and sales,” said Constantin M Gall, head of automotive and transportation at EY’s branch for Germany, Austria and Switzerland.
“The pandemic at one point almost brought the global auto industry to a standstill – bringing with it catastrophic consequences for sales and profit development,” he added.
Meanwhile, Nigeria can avoid a second wave of COVID-19 infection if all citizens adhere strictly to safety protocols, Dr Gabriel Adakole, a Public Health expert, has said. Adakole, an Abuja-based Public Health expert, gave the suggestion in an interview in Abuja.
He said: “With sustained cooperation from Nigerians, authorities and funding, Nigeria will not witness a wave in the number of infections.
The virus is still around, even though it seems to be less deadly and infectious in the country.” He noted: “Failure to adhere strictly to safety protocols by Nigerians may set us back.
What is happening in other countries should give Nigerians the warning of the risks of a second wave of infections.”
Adakole said that evidence has shown that the majority of Nigerians are susceptible, adding, “in essence, we should not be caught off guard.
The first wave needs to end. And in order to say one wave has ended, the virus would have to be brought under control with zero cases.
In some parts of the world, we’ve seen that happening, while we also seen record numbers in new infections elsewhere.
“In any case, which scenario is more probable depends on decisions by Nigerians and how the Presidential Task Force is prepared in the next three months.
This is crucial in the fight against a second wave of infections in the country.” . This came as Plateau State topped the Coronavirus (COVID-19) pandemic with the Nigeria Center for Disease Control (NCDC) announcing 296 new infections in the country.
Plateau state recorded 183 new cases on Tuesday after recording 25 new cases on Monday.
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The health Agency said that the new cases brought the total number of confirmed cases in the country to 55,456. According to the NCDC, 103 people who have been treated and recovered from the infection were discharged on Tuesday, raising the total number of recoveries to 43,334.
The NCDC said that six new fatalities also raised the death toll to 1,067 in the country. It stated that the 296 new infections were reported in Lagos, the Federal Capital Territory (FCT) and 13 other states of the federation.
The NCDC said that Lagos had 33 new cases and FCT, 25. Other states were Ogun, 16, Oyo, 7, Ekiti, 6, Kwara and Ondo, 5 each, Anambra, Imo and Nasarawa, 3 each, Rivers, Gombe and Edo, 2 each and Akwa Ibom, 1.
