BMW sold 21 percent fewer cars in the first quarter and is now letting the belts rest longer in most plants. The competition has not yet published figures and plans. But according to the Ifo survey, the outlook is bleak.
Munich (dpa) - BMW has extended the production stop in its plants in Europe and North America until the end of April.
Because of the corona pandemic, "a further decline in demand on the global automotive markets can be expected," said BMW in Munich. Because the car dealerships are closed, "it will take longer for the markets to recover".
Around 20,000 BMW employees are currently on short-time work in Munich, Dingolfing, Regensburg and Leipzig. BMW had shut down its plants in Europe, South Africa and Mexico in mid-March, and the Spartanburg plant in the USA followed in late March.
No car or motorcycle will be built in these factories in April, a spokesman said. Because "in Europe around 80 percent of all dealerships are currently closed due to the corona virus, in the United States it is around 70 percent," said BMW.
In contrast, the belts at the largest BMW location in Shenyang in China have been running again since mid-February. Sales Director Pieter Nota said: "In China we see the first signs of a recovery with a strong order intake."
From January to the end of March, BMW sold 20.6 percent fewer cars than in the first quarter of last year. The group sold only 477 111 BMW, Mini and Rolls-Royce brands. The market in China was hit hardest: sales collapsed by 31 percent, in Europe by 18 percent and in the USA by 17 percent. In March, however, the consequences in Europe and the USA were clearly noticeable, the car company said.
In March, a total of 38 percent fewer cars were registered in Germany than a year ago. According to the European industry association Acea, 1.1 million car manufacturers' employees in Europe are affected by plant closures.
The Munich Ifo Institute sees the "German auto industry with bleak prospects". According to the latest corporate survey, business expectations fell from minus 20 to minus 33.7 points in March, the demand index dropped to minus 30.6 points and "export expectations dropped to minus 42.7 points", the institute announced on Monday. "The stock of unsold cars grew again."
BMW sales director Nota said his company would adjust its production volume to meet demand. Several thousand employees used the production stop to convert the factories, a spokesman said. In Munich and Dingolfing, the belts will be prepared for the launch of the i4 and iNext electric cars next year. Component production continues in Landshut and Wackersdorf. The engine plant in Steyr, Austria, which also builds engines for China, is scheduled to start production again after the Easter holidays in mid-April.
Volkswagen will initially suspend production in all German plants until April 19; 80,000 people are on short-time work. At Daimler, tens of thousands of employees are on short-time work until April 17, according to previous plans. The US bank JPMorgan lowered its earnings estimates for the European car sector for the second time in the wake of the Corona crisis on Monday and is currently anticipating a decline in global car production of 19 percent.