An FCA spokesman said that some of the company's factories in Italy will temporarily suspend production and reduce output in response to the spread of the new coronavirus epidemic in Italy and throughout Europe.

Morgan Stanley has given an estimate of the impact of the new coronavirus on the U.S. auto industry: it will cause U.S. auto sales to drop by 9% this year.

However, on the same day, Tesla received great news: because Boeing's market value fell to US$106.5 billion, Tesla surpassed Boeing in one fell swoop to become the industrial company with the highest market value in the United States.

Morgan Stanley: U.S. auto sales will decline by 9% in 2020 due to the epidemic

In addition, industry consulting firm LMC Automotive predicts that the United States and other countries are expected to respond to the new coronavirus Concerns could lead to a 4% drop in global car sales this year, from 90.3 million in 2019 to 86.4 million. LMC had previously predicted that global sales would remain stable this year, falling slightly to 90.1 million vehicles.

In the United States, Morgan Stanley auto analyst Adam Jonas said that the "demand shock" caused by the spread of the virus may cause consumers to postpone the purchase of big-ticket items such as new cars. Includes pickup trucks, SUVs, crossovers and sedans. He expects U.S. auto sales to fall to 15.5 million units from 17.1 million units in 2019.

Jonas said in his report that concerns about the new coronavirus outbreak could have a knock-on effect on used car sales and consumer credit.

Jeff Schuster, LMC’s president in charge of global automotive forecasting, said that as the virus spreads, the epidemic will continue to have a negative impact on the automotive industry. He added, "Until there are signs that the virus is under control globally, market volatility will continue to exist, and its ongoing impact may extend into 2021."

FCA's Italian factory temporarily suspends production

An FCA spokesperson said on March 11 that some of the company's factories in Italy will temporarily suspend production and reduce output in response to the spread of the new coronavirus epidemic in Italy and throughout Europe.

The company said in a statement that it has strengthened protective measures at all factories, including deep disinfection of all work and rest areas, to support government instructions and curb the spread of the epidemic.

“Following these actions, if necessary, the company will temporarily close its factories across Italy.” A spokesman for the company said that those affected include Pomigliano, Melfi, Artesa and Cassino's factories, all of which will be shut down for 2 to 3 days from Wednesday (March 11) to Saturday (March 14).

A person familiar with the matter said that it is not expected to have an impact on the company's overall production speed; the temporary closure of the factory has nothing to do with the interruption in the supply of auto parts after Italy implemented measures to combat the epidemic.

So far, the impact of the epidemic on the automotive industry has spread from factories in China, South Korea and Japan to Europe.

Previously, few automakers had been forced to halt production lines in Europe and North America.

Italy is currently the European country most affected by the epidemic, and the government has banned all non-essential travel.

FCA is facing falling demand in its largest European market. Italian car sales also fell 9% in February and are expected to fall further in March.

Tesla’s market value exceeds that of Boeing

On March 11, local time, Boeing recorded its largest single-day decline in the past 40 years, with its market value falling to US$106.5 billion, lower than Tesla’s market value nearly US$10 billion. In fact, Boeing's stock price has been falling since the grounding of its best-selling 737 Max jetliner. With the spread of the new coronavirus epidemic, travel demand around the world has also been greatly impacted.

On the other hand, Tesla continues to threaten the status of manufacturing giants and industrial leaders, although the epidemic has also eroded some of the automaker's earnings. For Tesla CEO Elon Musk, surpassing Boeing in market value is a particularly satisfying milestone. After all, his other company, SpaceX, a space exploration technology company, also competes with Boeing.

At this time, Boeing is facing a series of crises: declining cash flow, successively damaged international reputation, and the government’s investigation into the crash of the Boeing 737 Max passenger plane. The company is planning to fully draw down a $13.8 billion loan as soon as Friday (March 13) to cope with the shock in global travel demand caused by the outbreak, people familiar with the matter said.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.