The motoring giants lost 11 billion euros to the COVID-19

The 17 largest automobile groups in the world recorded a combined operating loss of almost 11 billion euros in the second quarter due to the coronavirus, according to a study by the consulting firm EY published on Wednesday. The figure contrasts with the nearly 22 billion euros that these same vehicle manufacturers had made in the same period in 2019. "A collapse of this kind in turnover, profits and sales has never occurred before" in the sector, said the director of EY's Automotive and Transport department, Constantin M. Gall. The pandemic has come to "temporarily paralyse" the automotive industry, with "catastrophic consequences", he added.

Eleven of these companies closed the quarter in the red while six managed to post a profit. Only US manufacturer Tesla posted a better result than in the same period last year, as well as becoming the group's most profitable company, according to EY estimates. Turnover fell at all manufacturers, with a cumulative total in the quarter of almost EUR 177 billion, a drop of 41% over the same period last year.

There were, however, large differences between the various manufacturers: Tesla's turnover dropped by only 5% while Mitsubishi's turnover plummeted by 57%. Volkswagen fell by 37%, Daimler (Mercedes-Benz) by 29% and BMW by 22%. Sales, on the other hand, held up better in aggregate terms, largely thanks to China, which began its economic recovery earlier. The EY study estimates that sales will not recover pre-crisis volumes until 2022. Peter Fuss, one of the study's authors, considered that this shock will have "brutal" repercussions on employment, something that will start to materialize, in the form of layoffs and plant closures, "as early as next year".