Automotive manufacturers might be forced to suspend their production if Chinese auto parts suppliers cannot get back to work amid coronavirus crisis.
This, as the threat from the 2019 novel coronavirus crisis closed in on the global auto industry.
Fiat Chrysler Automobiles NV warned that a European plant might shut down within 2-4 weeks if Chinese auto parts suppliers cannot get back to work amid coronavirus crisis.
According to Fiat Chrysler Chief Executive Officer Mike Manley, the automaker could be forced to suspend their production at a European assembly plant if auto parts don’t begin to flow with 2-4 weeks, added that he didn’t identify the vehicle or plant at risk. Hyundai mentioned that shortages of auto parts from China might be forced to suspend production at their plants in South Korea.
Masayoshi Shirayanagi, an operating officer of Toyota, said that the automaker was “looking very closely at inventories of components” outside China. Also, AlixPartners consultant Hearsch said that automakers were more likely to have backup sources of critical parts than in the past.
IHS Markit said in a study that not all the production from Hubei province in China can be easily replaced or moved as Hubei was one of the provinces in China that were responsible for more than two-thirds of vehicle production in China.
Thank you for visiting our website. We hope we have helped you with regard to this matter. You may keep coming back for more informative guides.
READ ALSO | TNT Grand Finalist Spotted Singing Inside The Mall