Europe Production Forecasts Slashed As Coronavirus Alarms Consumers [Forbes]
Morgan Stanley (MS)
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Source: Forbes
Auto consultants are scrambling to slash their European auto sales and production forecasts for 2020 as the ramifications of the coronavirus become more horrendous for consumers by the day, with sales will fall 10% quickly followed by a negative 20% prediction and this week one prediction of a nearly 60% fall in production trumping all the rest, although this was a worst case scenario. Inovev of France, in a report published Monday, said if factories are closed by the coronavirus for 4 weeks, output will slip 13% for the year, while an 8 week closure will cut production by 22%. But if sales fall really sharply, say by 45%, production in Europe will dive 57% for the year. Earlier in the month, forecasters were still clinging to the notion sales might only slip a manageable 5%. Then Professor Ferdinand Dudenhoeffer of the University of St Gallen, Switzerland, said his best case scenario was sales in Western Europe would slide over 10% in 2020 to 12.7 million from 14.3 million the previo
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