The increasingly difficult situation in the automotive industry

The increasingly difficult situation in the automotive industry

Manufacturers of parts and components for automobiles are short of not only semiconductors, but also steel and, above all, magnesium.

Magnesium is an essential component of aluminum alloys, which are used to produce engines, among other things. As much as 90 percent of the global magnesium supply comes from China. However, some of the plants that produce it have been closed down. In others the production has been reduced by half. This is a result of the energy crisis. As a result, magnesium imported to Europe has become 75% more expensive in recent weeks. If its supplies in the first months of next year are limited, it may be a big problem for the motorization industry.

According to estimates of the Polish Automotive Industry Association, losses in car production in Europe this year will reach 3-4 million units. In turn, the Polish Economic Institute estimates that a 10% drop in global vehicle sales will result in a decrease in added value generated in Poland of 2.2 billion dollars. It may also result in the liquidation of 57 thousand jobs in our country.


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