The Port of Hamburg has warned that the German car sector, in particular the major southern state of Bavaria, could be severely affected by the COVID-19, or coronavirus, pandemic.
In a statement, Germany’s largest port said a number of key car manufacturing industries, as well as electronics and industrial machinery, are produced in Bavaria.
While freight from Bavaria to Hamburg has not slowed down yet, the industry relies heavily on imported components, largely from China, facet which the port described as its “Achilles heel”.
60 % of German mechanical engineering companies already feel that the supply chains have been affected by the pandemic.
These hubs are connected to the port by rail, where goods are exported to international markets. Major companies that could be affected include BMW, Porsche, MAN, Audi and Mercedes.
Approximately 400,000 jobs in Bavaria are linked directly to this sector in Bavaria alone and it accounts for 27% of the state’s GDP.
However, it also said that the IT sector could benefit, with many solutions to help people work remotely being in high demand. Companies such as Infineon, Microsoft, Siemens and a few others in the greater area of Munich could benefit.