BUDAPEST/PRAGUE - The auto industry, long a driver of economic growth in central Europe, is likely to be one of the main drags on the region’s efforts this year to recover from the impact of COVID-19.
That is bad news for the Czech Republic, Hungary and Slovakia, which are particularly reliant on the auto industry. But some car producers in central Europe expect output to drop 20-25% this year, reflecting a global production slump, and GDP is likely to be dented. “In the second half of 2020, we hope for more orders and an improvement in the situation on the automotive market so we can fully use production capacity,” a company spokesman said. Kia’s Slovak production dropped 27% in the first half of the year.Groupe PSA Slovakia, owned by Peugeot maker PSA, has said it has enough orders until the autumn.
Peter Erdelyi, chairman of the Hungarian Car Importers’ Association, said there had been no response yet.
Yes, well who is going to buy new cars right now ?
Double whammy for other EU countries especially Spain whose auto industry will be hit and tourism as well especially as it relies on many tourists from the UK. It already had high youth unemployment going into Covid which will have made unemployment worse.
Thank me later
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