Coronavirus Update
CAR researchers are keeping a close eye on the coronavirus outbreak (officially known as 2019-nCoV)—especially as it may impact the auto industry in China and global supply chains.
Many automakers and suppliers are suspending production following the Lunar New Year holiday, and some automakers and suppliers have issued profitability and output guidance that the spread of the virus will impact their company’s Q1 2020 projections. Here are a few resources to keep you informed on the automotive impact of the virus:
- CNN: The coronavirus crisis could shut auto plants around the world
- The Global Times: Carmakers impaired by sudden supply disruption caused by coronavirus
- Automotive News Europe: FCA says China disruptions could threaten Europe production
- CNBC: Coronavirus adds to ‘dangerous days’ for Detroit automakers in China
- Nikkei Asian Review: Indian automakers face parts shortage as China epidemic hits supply chain
- Reuters: China car dealers seek help as coronavirus slows showroom traffic
- Reuters: Coronavirus could shrink China auto market by 3%-5% in 2020: LMC Automotive
- IHS Markit has an update on the Coronavirus Impact on Automotive Industry, as well as a webinar.
- The New York Times has a coronavirus live update feature.
- Automotive News: Industry Confronts Virus Fears in China
- Automotive News Europe: Automakers, suppliers scale back, issue profit warnings as coronavirus spreads.
- Bloomberg: The Coronavirus Is Infecting the Global Economy. Here’s How.
- Detroit News: Coronavirus deepens challenges for Detroit Three in China.
- Nikkei Asian Review: Wuhan shutdown knocks ‘world’s factory’ off-kilter as death toll rises: Prolonged business closure casts stifles auto and high-tech industries. The story includes a list of major companies in Hubei Province.
- Wall Street Journal: Virus Outbreak Confronts Global Automakers in China.
- The U.S. Centers for Disease Control has an information page on 2019-nCoV.
If you are concerned about reported cases in the United States, the CDC page (referenced above) and your county health department are useful resources or what you can do to protect workers in your U.S. facilities.
UPDATE 2/24/2020: The coronavirus outbreak (COVID-19) has spread now to South Korea, Europe, and the Middle East, even as the number of reported cases in China are steadily declining. The Dow Jones Industrial Average dropped sharply on 24 February 2020 as news of the spread of the disease came out over the previous weekend. The North American impact of the supply chain disruption may still be a few weeks out as it can take 30-60 days for parts sourced from Asian factories to reach the point of production here. Additionally, the disruption may impact parts and components sourced from other countries, and each level of the supply chain has an inventory that may serve to buffer and further delay production interruptions in North America.
- Automotive News: Aptiv expects coronavirus to ding Q1 revenue by $150-$200 million
- Automotive News China: Honda, with plants offline, faces Feb. sales shortfall
- Bloomberg: Japan Sets Up Task Force to Deal With Virus Impact on Automakers
- Bloomberg: Virus Havoc Could Shut Down a Nissan Factory Half a World Away
- Crain’s Detroit Business: As coronavirus hits auto supply chain, question looms: Who pays for pricey freight?
If you are concerned about reported cases in the United States, the CDC page (referenced above) and your county health department are useful resources or what you can do to protect workers in your U.S. facilities.
And here is a useful Dashboard presented by John Hopkins CSSE
