Monday, April 6, 2020

Data show how European carmakers are under stress

Everyone knew the last few months would be terrible for car makers. New data is showing just how bad.


BMW said its vehicle sales plunged 20 percent in the first three months of 2020.
BMW said its vehicle sales plunged 20 percent in the first three months of 2020. Credit...Laetitia Vancon for The New York Times
The German carmaker BMW said on Monday that vehicle sales plunged 20 percent in the first three months of 2020. That figure probably understates the extent of the damage caused by the coronavirus outbreak, because lockdowns in the United States and Europe did not become widespread until March. Most dealerships in Europe and the United States are closed, BMW said.
In Britain, registrations of new cars fell 44 percent in March, the Society of Motor Manufacturers and Traders said Monday. Dealers sold 200,000 cars fewer than they did in March 2019.
In yet another sign that the industry is under financial stress, two large European car makers said they secured additional bank credits to get them through the downturn. PSA, the maker of Peugeot and Citroën cars, said on Monday that it had doubled the size of an existing line of credit with a group of banks, to 6 billion euros, or $6.5 billion.
The German carmaker Daimler said last week that it had arranged to more than double the credit it can draw on if needed, to €23 billion from €11 billion.





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