Market Cap Of The World’s Five Largest Automobile Manufacturers Plunged By $63bn...

Market Cap Of The World’s Five Largest Automobile Manufacturers Plunged By $63bn In 2020

54
0
SHARE


The COVID-19 pandemic has had a severe impact on the
global automotive industry, causing supply chain disruptions
and factory closures. All of this placed intense pressure on
the market already coping with a downshift in global
demand.

According to data presented by BuyShares.co.uk,
the market capitalization of the world’s five leading
automobile manufacturers plunged by $63bn amid coronavirus
crisis, falling from $426.5bn in December 2019 to $363.5bn
last week.

Volkswagen Group and Toyota Lost $33.1bn
in Market Capitalization

The world’s largest
automobile manufacturer, the Volkswagen Group, managed to
reduce the effects of Covid-19 in the first half of the
year. Nevertheless, the Group`s financial report revealed
that sales revenue decreases by 23.2% since January,
reaching €96.1bn at the end of the second quarter of the
year. Until the end of June, the Volkswagen Group reported a
significant year-on-year decline of 27.4% in its deliveries
to 3.9 million vehicles.

Frank Witter, a member of the
Group Board of Management responsible for Finance and IT,
said: “The first half of 2020 was one of the most
challenging in the history of our company due to the
Covid-19 pandemic. Thanks to the great team effort, we have
gradually been able to ramp up operations within the Group
and up until now, have steadily managed to navigate through
this unprecedented crisis.”

At the end of December,
the market capitalization of the world’s leading automobile
manufacturer stood at $87.6bn, revealed the Yahoo Finance
data. Since then, this figure dropped by $17.7bn, reaching
$69.9bn last week.

Toyota Motor Corp, as the
second-largest automobile manufacturer in the world, lost
$15.4bn in market capitalization amid COVID-19 outbreak,
falling from $196.9bn in December 2019 to $181.5bn last
week. The company’s financial results revealed the smallest
quarterly profit in nine years as the coronavirus pandemic
halved its car sales. Toyota’s operating profit plunged 98%
to $131.73 million for the three months ended
June.

Market Cap of the Largest US Automobile
Companies Plunged by $20.8bn

The world’s
third-largest automobile manufacturer, Daimler, has also
witnessed a staggering drop in market capitalization amid
the COVID-19 crisis. Statistics show the company`s market
cap plunged by $9.1bn in the last eight months, falling from
$52.8bn in December 2019 to $43.7bn last week. Daimler also
reported a substantial Q2 2020 loss due to the sharp fall in
sales caused by the coronavirus pandemic.

In the
second quarter of the year, Daimler’s total unit sales
plunged by 34% to 541,800 passenger cars and commercial
vehicles. The company’s revenue also dropped by 29%,
reaching €30.2bn in Q2 2020.

The combined market
capitalization of Ford and General Motors, as the two
leading US automobile manufacturers on this list, plunged by
$20.8bn since the COVID-19 outbreak. Statistics show Ford
market cap fell from $37.9bn in December 2019 to $27.5bn
last week, a $10.4bn drop in eight months.

Ford was
already struggling before the pandemic hit and was in the
midst of an $11 billion restructuring plan to control costs
and roll out new vehicles. The virus forced the company to
close US factories for more than seven weeks during the
second quarter. Nevertheless, the company reported a $1.12bn
net profit in Q2, despite the virus.

As the
fifth-largest automobile company, General Motors lost
$10.4bn in market capitalization in the last eight months.
Statistics show the company’s market cap fell from $51.2bn
in December 2019 to $40.8bn last
week.

© Scoop Media

 



Source link

LEAVE A REPLY