Macroeconomic Consequences Caused by the COVID-19 Pandemic – Case Study of the Automotive Industry

Nikola Radić – Faculty of Business Economics and Entrepreneurship, Belgrade, Mitropolita Petra 8, Serbia

Vlado Radić – Faculty of Business Economics and Entrepreneurship, Belgrade, Mitropolita Petra 8, Serbia

7th International Scientific-Business Conference – LIMEN 2021 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Online/virtual, December 16, 2021, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-54-7, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.2021

Abstract

As a synonym for the industrial development of the 20th century, the automobile industry is considered the “industry of all industries” and the backbone of the development of mass production. It is one of the pillars of the global economy and a significant driver of macroeconomic growth, sta­bility and technological development. The core of the industry (production of cars, parts, assemblies and components) interacts with a wide range of business actors in the value chain, which multiplies the positive impact on economic growth and development. The economic importance of the au­tomotive industry far exceeds its quantitative dimensions. The automotive industry has significantly contributed to the introduction of the concept of in­tegrated supply chains and modular procurement, so all changes in the au­tomotive industry have a specific “echo” in the entire economy. The Covid-19 pandemic caused major problems in the functioning of supply chains, which had unprecedented consequences for the automotive industry. Currently, the biggest problem is the months-long shortage of semiconductors, caused by the reorientation of manufacturers to semiconductors for mobile phones, video game consoles and laptops. The paper analyzes the decline in car pro­duction and sales, lower-income, layoffs and problems with car delivery.

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