Sales of new cars are set to crash by up to a quarter this year in the wake of the Covid-19 crisis. This has accelerated a trend that could leave many garages struggling to survive.
This content was published on
2 minutes
Keystone-SDA/ts
The Swiss car industry has been hit head-on by the pandemic, given that spring is traditionally the strongest season in car sales.
Until May 11, salesrooms were shut and the only work that garages could carry out was repairs and servicing.
More
More
Can coronavirus help the environment?
This content was published on
Less smog over China, clearer canals in Venice, better air quality in parts of Switzerland – how much is due to coronavirus measures?
The result of this, according to import association Auto-SchweizExternal link, is that in April the number of new cars registered on the road was down two-thirds on the previous April and was lower than at any time since the oil crisis of the 1970s.
Auto-Schweiz, citing the results of a survey, expects new car sales to fall by around 23% to 240,000 in 2020. The Swiss Association of Independent Car DealersExternal link forecasts a similar situation and reckons up to 25% fewer new cars will be sold for the year as a whole.
“But this figure assumes that business will pick up again in the second half of the year,” said Auto-Schweiz spokesman Christoph Wolnik. “If there were another wave of the pandemic, the figures would probably have to be revised down even further.”
Garage threat
Such a large decline in sales is likely to pose existential problems for some garage owners. Wolnik says the possibility of a “garage death” cannot be ruled out. However, this will only become apparent in the coming weeks, months or perhaps even in the course of the coming year.
He says it could take ten years for the European car industry to recover. For that to happen, he says there has to be above all a general economic recovery and a positive development in the job market.
“If people have the feeling they’re going to lose their jobs, they’re not going to buy a new car,” he said.
External Content
Your subscription could not be saved. Please try again.
Almost finished… We need to confirm your email address. To complete the subscription process, please click the link in the email we just sent you.
More
More
Coronavirus: the situation in Switzerland
This content was published on
An overview of the latest Covid-related information in the Alpine nation.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
TradeXBank to resume full operations after Sberbank Switzerland taken off sanctions list
This content was published on
TradeXBank, the former Swiss branch of Russia’s Sberbank, will be able to resume its dollar-denominated activities from the second half of this year.
Geneva decides not to remove controversial memorials
This content was published on
The city of Geneva has presented an action plan regarding a series of controversial local statues and monuments of historical figures linked to racism, colonialism or slavery.
University of Lausanne calls for end to pro-Palestine sit-in
This content was published on
The pro-Palestinian occupation continues at the University of Lausanne (UNIL). On Monday evening, a group of students refused to agree to the deadline set by the rectorate.
Ukraine peace conference should include Russia, says Chinese ambassador
This content was published on
China supports a peace conference on the Ukraine war that would see equal participation of all parties, says Chinese Ambassador to Russia Zhang Hanhui.
This content was published on
A majority of Swiss citizens have open attitudes towards various infertility treatments, including even egg donation, which is currently prohibited.
Reports of Swiss cyber fraud almost doubled in six months
This content was published on
The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
‘Switzerland is going to face an unimaginable level of poverty’
This content was published on
The queues for food in Geneva show that while the health crisis seems to be subsiding, the economic crisis has only just begun.
This content was published on
The main train stations in Bern and Zurich lacked their usual bustle on Monday morning, despite public transport returning largely to normal.
This content was published on
May 11 marks the start of the second phase of a plan to restore normality to life in Switzerland. Many schools will resume teaching, shops and restaurants will be allowed to re-open, public transport will go back to normal service and restrictions on entry to the country will be eased. From Monday border crossings will…
Swiss commodities sector grapples with Covid-19 turbulence
This content was published on
The importance of commodities and experience in handling fluctuations has helped commodity firms weather the coronavirus storm better than most.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.