Coronavirus may slow car production
Supply chain problems could cripple some nameplates, suppliers warnCar-makers around the world have pressed the button on their back-up plans after the Coronavirus hit their supply chains.
Every European and Asian car-maker we have contacted has changed their plans to keep showrooms supplied with cars, while suppliers have slammed their Chinese lines shut.
Many car-makers and suppliers have admitted they had staff affected by the virus, including supplier Webasto, which has four staff hospitalised with the virus.
There are several car-makers with factories in the effected Wuhan region of China, including General Motors, Honda, Dongfeng, Nissan and PSA.
Car-makers have asked for impact statements from their suppliers on the number of infected workers and the likely impact that will have on their just-in-time delivery systems.
The world’s biggest supplier, Robert Bosch, has warned car-makers the virus could cripple parts of its supply chain, which depend heavily on China.
"We need to wait to see how things develop. If this situation continues, supply chains will be disrupted,” Bosch CEO Volkmar Denner said.
“There are forecasts that predict the peak for infections will drag on until February or March.
"In Wuhan, Bosch has two plants making steering systems and thermotechnologies, with around 800 employees. There have been no reports of infections," Denner said.
While he had not yet seen a disruption to the business, China is a Bosch powerbase for electric motors, power electronics and transmissions, but its plants have been closed for the Chinese New Year anyway.
The situation could become critical if the virus spreads across China, with Bosch boasting 23 automotive sites in the country.
Webasto, meanwhile, employs 1000 people in a small German village of just 4000 near Munich, with four employees between 27 and 40 hospitalised.
The Webasto case, with one employee contracting the disease from a training session with a Chinese colleague in what is believed to be one of the first person-to-person transmission in the world.
It has asked employees to work from home during the Coronavirus’ spread.
"Inside, the crisis committee is meeting: management, communications, IT. It's about two dozen people," a spokesperson said.
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