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Moody's Downgraded Its Forecast For Global Car Sales

Moody's Downgraded Its Forecast For Global Car Sales

International rating agency Moody's expects a 20% drop in global car sales this year. The previous forecast called for a 14% decrease in this indicator, according to a message posted on the Agency's website on Wednesday.

"The rating agency now expects global car sales to fall by 20% in 2020, which is worse than the previous forecast of a decline of 14%. The impact of the coronavirus on the economy is getting worse," Moody's explained.

According to Moody's, this year, this indicator in Europe will decrease by 30%, in the US by 25%. The Agency left unchanged its forecast for car sales in China for the current year, a decline of 10%.

Moody's does not rule out that the volume of car sales in the world will increase by 11.5% next year, while GDP in the G20 countries is projected to grow by 4.8% in 2021.

American automobile giants General Motors, Ford, and Fiat Chrysler will begin resuming operations of their plants in Michigan, suspended due to the pandemic, on May 18. General Motors, Ford, and Fiat Chrysler announced the suspension of production in North America on March 18. The auto giant's management stressed that employees would receive unemployment benefits and payments from companies until the factories reopened.

General Motors was the only one in the big three to make a profit in the first quarter of this year. GM's net profit in the first quarter was $0.3 billion. Revenue reached $32.7 billion. The company estimated its direct and indirect damage from the effects of the pandemic at $1.4 billion.

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