With the crisis of high stock, the German auto industry is in bankruptcy

Under the influence of novel coronavirus pneumonia, the German auto industry is facing a devastating blow. In order to enable more enterprises to survive the crisis, the German automobile industry federation and the German largest union organization hardware union are lobbying German Chancellor Merkel to let her approve the auto industry to resume sales as soon as possible.
“Some companies are full of inventory and can no longer hold any new cars, which means that most of the delivery and production work in the automotive industry has stagnated.” In a letter to the German finance minister, the Federation of German automobile industries said: “the automobile industry employs more than 800000 employees and plays an important role in the German industrial system. If factories are closed for a long time and new cars cannot be sold for a long time, the whole German industrial system can not bear the consequences.”
Novel coronavirus crisis caused by the new plant outbreak has caused the German car production capacity to drop sharply. In the current situation of large-scale production stoppage and dealers stopping sales, most enterprises have lost their source of income, but their fixed costs have not been reduced. According to the calculation of 220 working days a year, German automobile enterprises will lose 360 million euro (about 2.768 billion yuan) every day of business suspension.
In the current German automobile industry, the most dangerous is not the main engine manufacturers and dealers, but the parts suppliers. With the shutdown of large local manufacturers such as Volkswagen Group, Daimler group and BMW Group, a large number of parts suppliers have been affected. Although the German government has formulated a series of enterprise rescue measures, some small enterprises with financial constraints may have to go bankrupt before completing the application process.