October 15, 2021 Trending New York News

So the coronavirus is bringing the auto industry to its knees

Clelia Crisci, president and CEO of Lapo Compound at AGI: the situation is dramatic, perhaps we would have done better to stop immediately

The coronavirus epidemic is also sweeping the auto and components sector. Today all the main Italian factories of FCA will be involved in extraordinary sanitization interventions which will also, in some cases, lead to the temporary closure of individual plants to put in place all possible measures to minimize the risk of contagion among workers. Yesterday the governor of Bavaria, Markus Soeder, said that “the auto industry is almost stalled. We need a cyclical package to deal with the impact of the coronavirus”.

This sector too is, therefore, preparing for hard times. After the ‘war’ of tariffs between China and the United States that hit the European automotive sector hard, a new spectrum now appears. “After paying for the Chinese problem that has slowed down and in some cases stopped the automotive market due to lack of components, today we are dealing with limited transport and general fear. From the inside, we stop for the risk of contagion and the tail will be long! Once the supply crisis is over, with China recovering, we will have to deal with the demand crisis, with Germany that is now completely in. There will be no investment and we will have a new financial crisis that will slow down demand even more “, explains to Agi, Clelia Crisci, president and CEO of Lapo Compound, a company active in the production of polypropylene compounds to be used in the automotive, household appliance, aesthetic and technical sectors in general.

The company, born in 2001 in Campania and grown a lot in these years, represents the first link in that chain which is the basis of the automotive sector and beyond. “We make the raw material for those who make auto components . We have the pulse of the situation, because if you don’t buy raw materials, you don’t make cars. Because without question, the manufacturers stop and we play, we too who are at the beginning of the chain” , highlights Crisci. The real problem is that “right now the last thing people think about is changing the car .”

“The situation is dramatic, ” observes the president of Lapo Compound, “perhaps we would have done well to stop immediately, at the beginning of the infection . We will certainly resort to layoffs which is the only way to deal with critical issues. In the long run you will see even more difficulties. Nobody will go around dealerships to buy cars in 4-5 months from now. ”

In addition to the problem of demand is added that of transport. In particular for “abroad we have greater difficulties in exporting , because foreign carriers are afraid to come to Italy fearing that they will no longer be able to return. This also adds to the difficulties of the orders themselves”, adds Crisci.

Difficult to quantify the drop in orders. “It is still early to say, of course if we were able to resume activity in early April, on the 4th or 5th, we will have to discount a 20-30% drop . However, I believe this is an optimistic estimate.”

The regret is that the year had started well. “We worked hard, in the early months of 2020 the market was recovering. January but also February were positive months. The market was also starting up again in Germany while now the situation is very difficult. There will certainly be a crisis in the sector”, he concludes .

Yesterday, the New York Times wrote in an article on the European auto sector, it is precisely that indicated by Crisci: the real problem is not if the car manufacturers will be able to build cars but if they will be able to sell them.

Banner
Related Posts

The Truth About Bonni3

March 26, 2021

March 26, 2021

Who is Gabriel Comfort? Gabriel Comfort, better known by her stage name “Bonni3” is not your typical music artist. Her...

Oil: American shale oil producers are already in crisis

March 10, 2020

March 10, 2020

If prices stayed around $ 30, production could drop by 2 million barrels a day from the end of this...

Trump and central banks lift markets

March 12, 2020

March 12, 2020

After Black Monday, markets are taking their breath away from the US President’s promises of new tax cuts. There is...

Look for Ways to Achieve Success Without Excuses: Korab Kozgori’s Formula For Success

March 26, 2021

March 26, 2021

In life there are many ways you can achieve success, some may be more effective than others, but there is...

What is Vix, the index of fear that has returned to the markets

March 12, 2020

March 12, 2020

It is a sort of barometer on the volatility and nervousness of the financial markets, which had been put on...

3 Things That Ninos Attributes To His Success In Dropshipping

March 26, 2021

March 26, 2021

Ninos Shamo worked extremely hard in the dropshipping business that he had just launched after watching some tutorials from YouTube....

Jack Kellogg Giving His Parents the Life They Deserve

October 2, 2021

October 2, 2021

Jack Kellogg did not just become a millionaire overnight. He tirelessly worked for long hours and sacrificed his personal life...

How Kodi Brown Is Trail Blazing In The E-Commerce Industry And Not Leaving Others Behind

March 26, 2021

March 26, 2021

According to Statista, in 2019, retail e-commerce sales worldwide amounted to 3.53 trillion US dollars, and e-retail revenues will grow to...

Online Marketing to Survive the Covid-19: How Harley Cannard Leads Companies to Boost Their Brand on the Web

March 26, 2021

March 26, 2021

Although society is constantly changing, forcing companies to reinvent themselves to satisfy demands, events such as Covid-19 have represented a...

Comments
Leave a Reply

Your email address will not be published. Required fields are marked *

eighteen − 18 =