Global Auto Production Continues to Collapse



Posted by Ed 29 days ago
The global economy continues to grind to a halt and the culprit has never been clearer: the auto industry.

For the better part of almost 2 years now, we have been reporting monthly on marked slowdowns in key auto markets like China, North America and Europe. Now, the slowdown in this massive industry is what's helping spur an overall global economic slowdown, according to FT.

The reaches of the auto market go deep, with long supply chains and large consumption of raw materials, textiles, chemicals and electronics. The industry is home to millions of jobs and last year, the sector shrank for the first time since the global financial crisis. The IMF is estimating that this fall in output accounted for more than 25% of the slowdown in the global economy between 2017 and 2018.

The sector may also be responsible for up to 33% of the slowdown in global trade growth over the same period, the IMF said.

Gian Maria Milesi-Ferretti, deputy director of the IMF’s research department said:

“The car sector has been weighing heavily on manufacturing activity and growth.”

And the fund's forecast of a small lift in global trade in 2020 is dependent on a recovery in the auto sector. Conversely, the fund's analysis also notes the potential further damage that could occur if the auto sector becomes the focus of the ongoing U.S./China trade war.

The White House is slated to make a decision on auto import tariffs by November 13.


bananaq 29 days ago
the world must be happy. less auto sales means less pollution

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