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Car parts giant makes startling claim about the automotive industry
BY NEWS.COM.AU • 31/01/2020
SEARCH DRIVEN FOR VEHICLES FOR SALE
Photos / Getty Images
The world is apparently falling out of love with cars.
Volkmar Denner, the chief of German giant Bosch — one of the world’s biggest car parts suppliers — has issued an ominous warning to the car industry.
Denner believes that the world’s car production may have peaked.
Global car production is expected to slip for a third consecutive year in 2020. Bosch believes that the market will decline a further 2.6 per cent this year to 89 million vehicles, which is about 10 million less than 2017 levels.
Denner doesn’t envisage the start of this decade to get much better and sees no sign of global production increasing before 2025.
The Australian new car market hit the brakes in 2019 with a tally of 1,062,867 vehicles, which was a decline of about 8per cent on the previous year and the lowest sales total since 2011.
However, Australia in global terms is a small market. Denner says the real drivers of the slowdown in global production are the huge but falling markets of China, Europe and the US.
Bosch cut its global workforce by 6800 last year in response to the slowdown.
According to Reuters, Denner views opportunities for growth in his business for parts for electric cars — but this would be bad news for workers.
Denner says it takes 10 workers to make a diesel engine, three for a petrol engine and one for an electric motor.
- News.com.au
BY NEWS.COM.AU • 31/01/2020
SEARCH DRIVEN FOR VEHICLES FOR SALE
Photos / Getty Images
The world is apparently falling out of love with cars.
Volkmar Denner, the chief of German giant Bosch — one of the world’s biggest car parts suppliers — has issued an ominous warning to the car industry.
Denner believes that the world’s car production may have peaked.
Global car production is expected to slip for a third consecutive year in 2020. Bosch believes that the market will decline a further 2.6 per cent this year to 89 million vehicles, which is about 10 million less than 2017 levels.
Denner doesn’t envisage the start of this decade to get much better and sees no sign of global production increasing before 2025.
The Australian new car market hit the brakes in 2019 with a tally of 1,062,867 vehicles, which was a decline of about 8per cent on the previous year and the lowest sales total since 2011.
However, Australia in global terms is a small market. Denner says the real drivers of the slowdown in global production are the huge but falling markets of China, Europe and the US.
Bosch cut its global workforce by 6800 last year in response to the slowdown.
According to Reuters, Denner views opportunities for growth in his business for parts for electric cars — but this would be bad news for workers.
Denner says it takes 10 workers to make a diesel engine, three for a petrol engine and one for an electric motor.
- News.com.au
