Good day, ladies and gentlemen, and welcome to the conference call about the impact of COVID-19 on the MAHLE Group during 2020. At this time, all participants have been placed on a listen-only mode. The presentation is available online. Click on the Launch Presentation button, which was provided in the final registration email for this call, to see the slides. You can also download the presentation from the MAHLE Investor Relations website. During the Q&A session and after the presentation, you are invited to ask questions via the web chat or via phone. On the call today, MAHLE Group is represented by Michael Frick, Member of the Management Board and CFO of MAHLE Group, and Ralph Josephs, Vice President of Corporate Finance. Now, I would like to hand over to Mr. Frick.
Yes, thank you very much. We are delighted to welcome you to our extraordinary update call. Today, we want to inform you in particular about the impact the COVID-19 pandemic had on the automotive industry and MAHLE Group during 2020. Ralph Josephs and I will give you some insights about the development of MAHLE in 2020 and how MAHLE was able to prove its crisis resilience. Before I start with the presentation, please let me express my hope that all of you are doing fine and you made it through the past year without harm. After our presentation, we will be happy to answer any of your questions. The coronavirus outbreak in China prompted the World Health Organization to declare a global health emergency in late January 2020.
The subsequent global COVID-19 crisis has an ongoing impact on life, society, and the global economy, exceeding even the impact of the financial crisis of 2008 and 2009. As an effect, the automotive industry, besides many others, suffered from these uncertainties, mainly during the first half of 2020. In the second half, we saw a recovery of market demand, although still on overall lower than budgeted level.
In our last call, we communicated a global market downturn of more than 30% for passenger cars and light commercial vehicle production for the first half of 2020 compared to the first half in 2019. Based on the current outlook from IHS, the global market downturn for the full year 2020 is at 17%. In Europe, production volumes dropped sharply, especially in the second quarter. In the third quarter, however, production and demand picked up again. In North America, a similar picture emerges.
Besides the high number of COVID-19 cases, the uncertainties surrounding the U.S. presidential election had an impact on automotive production. In South America, the economic situation was further strained by a significant increase of the unemployment rate and also significant weakening of local currencies. India recorded one of the largest drops in production in the world. After a shutdown of production and ceasing demand during the shutdown period, the output finally began picking up in the fourth quarter. China has recovered faster than the rest of the world. Demand and production show a significant upward trend. Production of medium and heavy-duty commercial vehicles in 2020 was as well below previous years' figures by double- digits. In North America and Europe, the effects from the COVID-19 crisis deteriorated the cyclical downturn of heavy-duty vehicles. This led to a sharp decline in production volumes.
In both South America and India, significant interruptions of production characterized MHD manufacturing output in 2020. In the bigger global picture, however, China is the driving force in the commercial vehicle market, benefiting from massive infrastructure investments by the Chinese government. MAHLE Group sales in 2020 reflect the trends of the global automotive market. The pre-close sales of MAHLE Group for 2020 amount to EUR 9.8 billion. The final number will be confirmed after year-end closing. Compared to the budget, as well as the previous year, sales are lower by EUR 2.3 billion or 19%, respectively. Thereof, the decline in MAHLE's organic business amounted to EUR 2.0 billion or 17% of total sales, being in line with the overall market decline of passenger cars and light commercial vehicles. In addition to the aforementioned volume impacts, an unfavorable impact of EUR 300 million from currency translation strained MAHLE Group sales.
Page five illustrates the monthly sales development in 2020, clearly indicating the hit from the various shutdowns in the first quarter, followed by the subsequent recovery beginning Q2. Having already started the year 2020 on lower than budgeted total sales, MAHLE lost about one month's sales during the shutdown period in February and March in China. By the end of March, MAHLE had to stop production at all European plants. The same applies to North America and South America by early April. Accordingly, April marked the low point in our monthly sales. On average, the shutdown of production facilities lasted for about six to seven weeks. During the course of the ramp-up phase, starting mainly in May, MAHLE's global sales reached levels of up to 90% of budgeted volumes by July. From October 20 on, we saw markets further recovering, reaching around 95% of budgeted group sales.
All in all, COVID-19 and the previously described market environment has left a significant dent in MAHLE's current performance. Nevertheless, we continue to focus on the transformation of the global automotive powertrain business. Following our dual strategy, we are strengthening our existing market positions and building our future in a changing mobility world. During the crisis, MAHLE is taking every possible step to reduce the impact on profitability and its liquidity. Where possible, we are taking advantage from government programs for short-term work and similar schemes. The workforce is flexibly reduced in line with the sales levels. CapEx spending was adjusted since April to counterbalance negative cash impacts. A hard cut was carried out in all areas beside the future-orientated business. Only by Q4 2020, CapEx returns to pre-crisis levels.
Due to a stringent and successful working capital management throughout the year, inventory levels were constantly decreasing since June, reaching an even lower level than before the crisis. The positive result of our efforts is also visible in the positive liquid fund development of MAHLE. Liquid funds at November 2020 are significantly better than at year-end 2019. Although we are working hard to limit the impact of the crisis, the net debt to EBITDA ratio will exceed 2.0 thresholds of our financial policy. We are planning to return to levels below 2.0 leverage thresholds already at the year-end 2021. On a final note, I want to illustrate the highlights of MAHLE's overall efforts to adapt to technological change in the automotive industry and the challenging market environment. MAHLE had already initiated first comprehensive cost-saving and restructuring programs three years ago.
The major slowdown because of the pandemic led to further 7,600 headcount reductions, which we aim to reduce gradually. 3,700 of these jobs are located in Europe, thereof 2,000 in Germany. The initial cash outs, mainly related to the severance programs, are a necessary investment in our company's transformation and contribute to strengthen our future performance and returns. We maintain our efforts to reduce costs constantly, as MAHLE does not expect the vehicle market to return to pre-crisis levels for next year. Despite the economic challenges that the crisis entails, we continue to invest in future topics and drive our transformation process so that we remain competitive in terms of our know-how, our skills, the dedication of our employees, and the future-orientated product portfolio. I would like now to hand over to Ralph Josephs, who will give you an update on the funding activities of MAHLE Group.
Thank you, Mr. Frick. Also, warm welcome from my side. As known, MAHLE pursues a conservative financing strategy. In order to cushion possible liquidity losses arising during the COVID-19 crisis, MAHLE has decided to raise additional funds. In June 2020, MAHLE therefore added a second syndicated loan facility with an amount of EUR 500 million to the existing EUR 1.8 billion syndicated loan. This loan was granted by a consortium of relationship banks of MAHLE. Unutilized credit lines, together with cash, amount to available liquidity of EUR 3.3 billion as of end of November 2020. As you can see on page nine, all upcoming maturities of EUR 1 billion in the next three years are well-covered by three credit lines from syndicated loan facilities and the respective cash cushion. Internally, MAHLE has assigned each financing instrument its own purposes for use. To enhance MAHLE's flexibility and independence. Sorry.
MAHLE intends to get back to the bond market for new issuance as soon as the market conditions appear appropriate. All in all, MAHLE has sufficient funds and headroom available to cope with COVID-19 crisis and the transformation phase of the automotive industry while being able to take advantage of business opportunities anytime. As ESG has steadily increasing impact on capital market participants, MAHLE tackled this topic by being rated by EcoVadis. This is an agency assessing the sustainability of companies. In total, MAHLE is amongst the best 21% of its industry peers and thus received a silver medal from EcoVadis. In general, the following cornerstones can be highlighted. MAHLE is steadily increasing its business outside of the conventional passenger car combustion engine, which is at around 60% today and growing further.
Dedicated responsibilities and overarching management of ESG matters are implemented, and as MAHLE's shareholder is a foundation with anthroposophical background, social responsibility is part of our DNA. Also during the COVID pandemic, MAHLE used its know-how to work on society-related activities such as the production of protective masks. As a conclusion, I can say that the year 2020 was mainly affected by the COVID-19 pandemic, with a gradual recovery starting the second quarter of the year and almost reaching the budgeted sales levels at year-end. Major KPIs are better than expected considering these circumstances. Nevertheless, COVID-19 will continue to burden MAHLE's top and bottom line during 2021 and beyond. In the meantime, MAHLE seizes the opportunity to bring the company into an even stronger and more competitive position as before the crisis, by expanding cost-saving and restructuring programs.
We are confident that MAHLE's leading position in all relevant product categories, combined with a strong financial position and future-oriented business models, is beneficial to help shape the current change in the industry. Now I'd like to thank you for your participation in our extraordinary update call. We hope that you stay safe, and see you again in April when the disclosure of MAHLE's financial figures for 2020. With this, I would like to conclude our presentation and invite you to ask any questions you might have. Thank you.