International credit rating agency Standard & Poor’s (S & P) recently issued a warning after the new crown pneumonia epidemic spread rapidly, Volkswagen will suffer the most serious blow.
What is the credit rating agencies?
credit rating agencies in the financial markets is an important service agency, which is composed of specialized economic, legal and financial experts, to conduct securities issuers and securities credit rating organization . Internationally recognized as the most authoritative professional only three credit rating agencies, namely the United States standard middot; & Poor’s and Moody’s Investors Service and Fitch Ratings Ltd.. The warning is the standard middot; Poole.
Why is Volkswagen?
In a recent Standard & Poor’s report said: “The Volkswagen Group has 40% of the cars made in China.” This proportion of global sales are higher than in other joint ventures. Although Shanghai Volkswagen, FAW-Volkswagen factory in Wuhan away from the center of the virus, but the Chinese government’s defense measures, Volkswagen factories have been affected, out of a state of suspension.
in the Chinese market last year, Volkswagen sold 3.1632 million, an increase of 1.7%. This probably accounts for half of global sales of the Volkswagen brand, but the epidemic will affect the sales of the public. S & P also predicted that Volkswagen will be negative growth in two years. Prediction
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Standard & Poor’s withdrawal of China’s auto market will grow by 1-2% this year ]
S & P also withdrew its forecast for China’s auto market will grow by 1-2% this year. This is because the Chinese government is expanding close range of the city, especially in areas where the infection has spread, and closed the major car factory. And by the end of last year, China’s car sales have declined for 17 consecutive months.
In addition to the vehicle factory, the manufacturer will also parts downtimeA negative impact on car production. Bosch recently announced the Asia-Pacific region after parts supply disruptions, Valeo also proposed to extend to shut the plant in Wuhan plant.
At the same time, the new coronavirus damage to the industry is spreading to the outside of China, trade with China is most closely Korea, due to the absence of timely supply of auto parts, Hyundai, Kia, Ssangyong Motor’s factories in South Korea suspension.