The impact of the coronavirus outbreak on automobile output and demand will shave 170 billion yen ($1.6 billion) from the profits of Japan’s top five automakers, Goldman Sachs said.
Total sales for all global automakers are now projected to shrink 3.5 percent in 2020, instead of the previous estimate for a 0.3 percent decline, according to the bank. Even if factories get back online, “it will take some time to return to full capacity owing to labor shortages and the need to secure adequate supplies,” analysts including Kota Yuzawa wrote in a report.
The spread of the illness, which has shut down factories in Hubei, China’s fourth-largest vehicle-manufacturing hub, has had a ripple effect across the global auto industry. Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mitsubishi Motors Corp. and Mazda Motor Corp. rely on parts from the country even if they assemble vehicles elsewhere.
All told, the five manufacturers will build 580,000 fewer cars from January through…