AutoBeta(AutoBeta.net)02/08 Report--

Under the influence of the pneumonia epidemic infected by novel coronavirus, a number of car companies have announced that they will postpone the resumption of production because of a shortage of parts suppliers. Hyundai and Kia plan to postpone their Chinese plants until February 17, Hyundai Motor Group said.

Previously, most of Hyundai's factories in South Korea have suspended production on the 7th, and Kia has also suspended production since the 10th, as parts produced by Chinese suppliers have been suspended, of which 87% of South Korea's imported car wiring harnesses are made in China. Therefore, when South Korean car companies restart production depends on the resumption time and supply plans of China's car wiring harness factories.

Hyundai said it would provide services such as workshop disinfection, installation of thermal cameras, thermometers and cleaners for South Korean parts suppliers' wiring harness factories in China, and hopes to start work as soon as possible. South Korean factories are expected to reopen on February 11 or February 12.

According to the latest foreign media reports, the South Korean government said on February 7 that it hoped that Chinese local governments would give a lot of support to help South Korean auto parts factories resume production in China.

The South Korean government said that the production of Hyundai Mobis, Jinhu tires and other Korean suppliers in China has been shut down, once the suspension time is extended, it will adversely affect the upstream business subcontractors. If necessary, the government will allow companies affected by the epidemic to extend the production hours of their factories in South Korea, according to a joint statement issued by a number of government departments in South Korea. so as to make up for the capacity gap caused by the disruption of China's auto parts supply chain.

The South Korean government further said that if Chinese local governments lift the ban on factory shutdowns in the next few days, companies will still face a problem, and many employees will still be afraid to return to work or are not willing to return to work because of the epidemic. China's current factory closure ban is designed to stop the spread of the epidemic.

With the expansion of the impact of COVID-19 's epidemic, parts shortage has become a common phenomenon in the automobile industry, and more and more automobile manufacturers will stop production due to supply chain problems.

Toyota, a Japanese car company, said on the 7th that it would continue to stop production at its Chinese factory until February 17 due to a shortage of parts. Dongfeng Honda said the Wuhan plant would resume production after February 17.

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