The energy crisis in automotive
The energy crisis in automotive, Various EU countries have been affected by this energy crisis,
especially in the automotive industry.
We cannot deny that a large part of the European economy depends on mechanization and industry,
especially the automotive industry, by the harsh winter, the scale of the problems will worsen,
prompting governments to intervene and try to control the situation,
especially since suppliers linked to schedules that they may not be able to meet them are the most affected.
The market has been greatly affected and signs of higher auto parts prices have begun,
perhaps in the turbulent supply market due to these crises,
where the automotive industry market in Europe is expected to decline significantly,
which may reach one million cars in three months by the end of the year.
It is expected to continue during the new year, as suppliers are significantly affected by the rise in energy costs
As we mentioned, the supply shortage, which has led to a significant decline in auto parts,
will put significant weight on manufacturers from the beginning of November until mid-2023.
By winter, the flow of energy to factories may stop, S&P Global Mobility said in its report on
Tuesday, expecting that European factories based in Europe will produce between 4 to 4.5 million cars in the quarter of the year.
If energy restrictions are imposed, auto production could be affected and drop to 2.8 million per quarter,
losing between 4.8 million and 6.8 million units per year.
Despite this, there has been a glimmer of hope for Mercedes-Benz,
which announced good increases in sales during the third quarter of more than a fifth in conjunction with inflation.
Despite deteriorating economic expectations and supply problems,
Germany and the Czech Republic have advanced at a time of suffering from Belgian, Spanish, and Italian factories,
which have reached minimum energy self-sufficiency. Germany had another
BMW
also BMW confirmed the stability of its quarterly sales compared to last year at less than 588,000 cars.
Mercedes said in a statement that global demand for its car remains very strong despite uncertainty in its neighbour’s energy supply.
It also mentioned a significant recovery in the electric car industry, where deliveries doubled to almost 30,000 cars.
While many automakers continue to report strong demand,
consumer confidence measures in key markets are near record lows amid rising inflation,
and central banks in Europe, the UK, and the US are raising interest rates to tame higher prices,
moves that would reduce demand for large purchase items such as cars.
Mercedes
delivered about 517,800 vehicles globally in the third quarter, estimated to increase by about 21%,
compared to the same period last year with strong demand growth in China leading all major regions,
Mercedes said Tuesday. In Europe, where double power bills affect buyers,
Despite semiconductor shortages, deliveries have risen by about 18%. This is due to the fact that production has been hampered by these shortages.
However, despite this hindrance, companies have still managed to increase their output.
This is a positive sign for investors and traders as it shows that companies are still able to meet demand despite challenges.
The partner still fulfils its orders maintaining its reputation and defying all obstacles.