{"id":148407,"date":"2020-06-04T11:34:59","date_gmt":"2020-06-04T15:34:59","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=148407"},"modified":"2020-06-04T14:05:28","modified_gmt":"2020-06-04T18:05:28","slug":"global-industry-taking-a-massive-hit-full-recovery-years-away","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2020\/06\/global-industry-taking-a-massive-hit-full-recovery-years-away\/","title":{"rendered":"Global Industry Taking a Massive Hit; Full Recovery Years Away"},"content":{"rendered":"
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Sales of new vehicles are going to slide by 47 million vehicles during the next three years, predicts AlixPartners.<\/figcaption><\/figure>\n

Doctors are starting to discover that COVID-19 can have long-lingering effects. That\u2019s no surprise to the auto industry which is expected to feel the impact for years to come, according to a new study which anticipates global vehicle sales will fall about 47 million short of previous forecasts during just the next three years alone.<\/p>\n

The pandemic\u2019s effects will be felt across the industry and, indeed, around the world, with demand expected to fall to 70.5 million this year, off from the record 94 million which the industry isn\u2019t expected to come close to again until the second half of this decade, predicted consultancy AlixPartners, as part of its annual state-of-the-industry study. The U.S., meanwhile, will likely come in at barely 13 million \u2013 and could possibly dip as low as 12 million should the economic recovery lag, said Mark Wakefield, the firm\u2019s head of automotive operations.<\/p>\n

The industry has been forced to pile up record debt, the study noted, taking on $72 billion in credit lines, term and other forms for debt during a 12-week burst. That is more than during the entire Great Recession, and will contribute to what Wakefield described as \u201ca profit desert\u201d that will likely stretch out for the foreseeable future.<\/p>\n

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(Mazda bucks industry trend, posts sales gain in May.)<\/a><\/strong><\/span><\/em><\/p>\n

The industry will need to adjust in an assortment of ways, according to members of the AlixPartners team which presented its findings during a Thursday-morning webinar. That includes cuts to structural costs, as well as investments in critical new technologies such as electric and autonomous vehicles.<\/p>\n

\"\"<\/a>Among some of the key findings:<\/p>\n