Ford will robotize its plants7/26/2023 ![]() ![]() On the other hand, the production of car increased in the first part of this year. In addition, Brexit has already affected the demand in the auto industry, as there was a 30% drop in the auto parts exports during this period. In addition, if comparing external deliveries in the first half of 2019 with those in the same period in 2018, Romania’s auto industry was affected by a lower demand from Germany, where the drop was almost 4% in exports, while the evolution of exports to France and Italy remained the same. Thus, exports of car components and accessories reduced their volume by more than 10% for the fourth consecutive quarter. Such an evolution is registered mainly by goods produced in industrial branches integrated in the international production chains, among them the auto industry. The National Bank of Romania announced that the annual dynamics of the volume of exports of goods became negative, induced exclusively by deliveries to EU markets (a decrease of 1.7%). On one hand, it strongly affected the demand for car components and thus severely altered the volume of exports, which further has a negative impact on GDP in a period in which Romania is confronted with severe current account and budgetary deficits. In this respect, the recent global developments led to different impacts. It encompasses about six hundred companies that produce not only cars or collections of components that can be assembled abroad, but also a diversified range of related parts such as cables, conductors, electronic components, lighting fixtures, accumulators, tires, etc. ![]() In Romania, the auto industry accounts for 14% of GDP and has a contribution of 26% in exports, according to Christophe Dridi, general manager of Automobile Dacia and Groupe Renault Romania, therefore having an important impact in the economy. For the last year, the contribution of the auto industry to the formation of GDP was about RON 132 billion, and the production of auto equipment for Germany was over RON 18.3 billion. In addition, the industry is also confronted with the changes in the structure of production and demand in the following years, giving the development of electrical cars.Ī decrease as that forecasted by EGR is similar to a decline of 21% of the auto industry in Germany this year, which could lead to a proportional decrease of the German demand for car equipment manufactured in Romania, totalling RON 3.6 billion (EUR 0.76 billion), according to analysts. However, the close ties with this country will negatively affect the auto production causing even a 1% drop in GDP, according to specialists. In Central and Eastern European countries, almost 10% of the total added value and between 6-9% of the total jobs are directly and indirectly generated by the auto industry, as the region has the second highest capacity production in Europe after Germany. In this context, Erste Group Research (EGR) forecasted a decrease of one million units in the auto industry in Germany as compared to the average in the period 2015-2017, which is close to the minimum level in 2009. ![]() Due to the fact that car manufacturers have long supply chains, are important consumers of raw materials, chemicals, textiles and electronics, and generate indirectly a lot of jobs in the services sector such as sales, repairs and maintenance, their impact on the economy is extensive. One of the most affected sectors is that of the auto industry. Romania is not immune, as there is a high dependency of the exports to the demand of the large economies in the EU, such as Germany, France, Italy or the Netherlands. The evolutions at global level, shaped by the trade wars and potential contraction of the Euro area industry due to the accentuated decline of the activity in the enterprises in Germany, risk destabilizing the entire economy in the European Union. While the car production is expected to expand in the following period, Romania is facing the challenge of reducing carbon emissions and adjusting to the global trend of adopting electrical vehicle. On one hand, there was a drop by 1.8% in the car components exports, while on the other hand, vehicle exports increased by 5.1% in the first semester of 2019, due to competitive prices. The turbulences on the auto market at international level had different impact on the Romanian market, where the auto industry accounts for 14% of GDP. The impact of the international auto market’s evolution in Romania ![]()
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