AutoBeta(AutoBeta.net)02/01 Report--

Due to the spread of the COVID-19 epidemic, a number of domestic auto parts companies upstream and downstream have suspended or postponed production plans, so that a number of car companies around the world will be affected. South Korea's Hyundai Motor Co., Ltd. said it plans to suspend South Korean-made Palisade SUV models this week in response to supply disruptions caused by novel coronavirus's outbreak.

A Hyundai supplier working with Hyundai will shut down production and extend the time until February 9 due to supply disruptions caused by the novel coronavirus outbreak, a spokesman for the Hyundai Automobile Union said on January 31. To that end, the company plans to suspend production of Palisade SUV models in South Korea this weekend, but it is looking for alternative suppliers in South Korea and other parts of China, hoping to resume production as soon as possible.

Ssangyong Motors, another local car company in South Korea, was also affected, saying it would suspend production plans in Pyeongtaek, South Korea, between February 4 and February 12 due to parts supply disruptions caused by a factory shutdown with China.

Volkmar Denner, global chief executive of Bosch Group, also warned on January 29th that novel coronavirus could affect Bosch's global supply chain because of its heavy reliance on the Chinese market. He added, "We need to wait for the situation to develop. If this continues, Bosch's global supply chain will be disrupted. It is predicted that the peak of infection will last until February or March. "

With the continued impact of novel coronavirus's pneumonia, the General Office of the State Council issued a notice on January 27 to extend the 2020 Spring Festival holiday. Subsequently, various provinces, cities and regions have also announced plans to extend the holiday, and most domestic enterprises have made different plans to stop production and postpone production in response to the national call.

It is understood that at present, more than half of the enterprises have extended the construction period in accordance with the holiday notice stipulated by the state, and nearly 17% of the enterprises have postponed the statutory holidays. According to a rough estimate, nearly 70% of the enterprises have delayed the start of construction due to the impact of the epidemic, including a number of upstream and downstream enterprises in the automobile industry.

In fact, the novel coronavirus epidemic has had a tremendous impact on the global automobile industry. As a result of the spread of the epidemic, a number of domestic and even worldwide car companies cooperating with China have been affected. A number of partners around the world have almost cut off ties with China's Hubei Province and other regions, while car companies from around the world have a lot of business in central China.

Some analysts said it was too early to predict the potential impact of the outbreak on the auto industry, and although China also experienced the impact of the SARS epidemic in 2003, it was not comparable today, because the Chinese auto market was still very small at that time. With the rapid development in the past 10 years, China has become the largest single automobile market in the world. To this end, analysts warn that if the epidemic intensifies, the auto industry will be further hit.

So far, Dongfeng Motor, Great Wall, BMW, Renault, Toyota, Ford, Qoros, SAIC GM, Volvo, Chery, Geely and other car companies have announced delays in resuming work.

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