Global sales will fall by more than 12 percent this year to 78.8 million units, a downgrade of 10 million units from the company’s January forecast. In comparison, the two-year “peak to trough” decline during the global recession in 2008-2009 was 8 percent.
Another forecast by LMC Automotive said global sales could fall to 69 million in a worst case scenario.
Recovery will be very difficult says Moody’s Investors Services which has taken a wide and deep look at the implications and seen it downgrading the global car industry, which will make it more expensive to borrow funds to keep going or develop.
Moody’s put General Motors under review along with Daimler, Jaguar Land Rover, PSA Group, Renault, Volkswagen, Volvo Cars and McLaren Holdings. In Japan, Toyota, Nissan and Honda were downgraded on Thursday.