- More than 10 carmakers have shut, slowed or stopped output at their Chinese factories.
- Some OEMs will suffer production slow downs at plants worldwide from a lack of Chinese-built parts.
- Bottom lines and profit margins will take a big hit too.
We reported last week that the coronavirus outbreak was affecting a number of carmakers, particularly those in South Korean like Hyundai, given their close ties to Chinese part factories. The list of affected OEMs has grown nearly all major players.
Reuters put together a comprehensive list of affected OEMs along with planned closure and opening dates. As most of us know, every major car manufacturer has established one or more assembly plants in China in order to feed the seemingly endless demand from this market. Such investments are enormous and forced closures will undoubtedly have an important impact on bottoms lines.
Most of the listed manufacturers are planning to restart production at some point this week, as early as today. For others like FCA, they are foreseeing complications at some of its European plants in the coming weeks as stocks drop and suppliers fall behind on production.
Measuring the impact of the coronavirus outbreak has only just begun and may last a while yet.