AutoBeta(AutoBeta.net)03/12 Report--

As the COVID-19 epidemic swept through Italy, some carmakers and parts makers have closed factories in Italy, cut capacity and moved workers elsewhere, Reuters reported. This is just the beginning. The COVID-19 epidemic is plaguing the beleaguered car industry, and European carmakers will face the risk of capacity cuts, factory closures and even layoffs.

In an effort to prevent the spread of the epidemic in Italy, Fiat Chrysler said in a statement on Wednesday that factories in Italy would implement new measures to support the national response to the spread of the COVID-19 epidemic. The company will close production at four Italian plants, including three that make Fiat and Alfa Romeo for three days, and one that makes small Jeep and Fiat crossovers for two days.

Italy is the main automotive production base of the FCA Group, with 16 factories in Italy that produce cars and engines for brands such as Fiat, Jeep and Alfa Romeo. It is worth noting that last week FCA ignored concerns about the epidemic in Italy and unveiled its Fiat 500e all-electric model last Wednesday. The car was scheduled to be unveiled at the Geneva Motor Show, but the Geneva Motor Show was cancelled because of the epidemic, and FCA held its unveiling ceremony in Milan, Italy.

At present, Italy is the country with the worst epidemic overseas. According to data released by the Italian Ministry of Health, by 00: 00 on March 12, the number of confirmed cases of COVID-19 in Italy has increased to 12598, with 2315 new cases in a single day, a record high. In order to prevent the spread of the epidemic, Italy has implemented a nationwide city closure since the 10th.

In addition to FCA, car companies including PSA, Volkswagen and Jaguar Land Rover are also examining the impact of the epidemic on factories to help employees avoid the outbreak.

PSA said it had tightened safety regulations at its Moorhouse plant in eastern France, which employs more than 5000 people, after one employee tested positive.

Volkswagen said it had reached an agreement with unions at its Navarre plant in Spain to repatriate some of its workers. In addition, Volkswagen Seattle plans employees at its Martorell plant in Barcelona, Spain, to return home temporarily in case the novel coronavirus outbreak disrupts the supply chain. Matias Carnero, the union representative, said Seattle would face layoffs affecting about 7000 people if production was halted or cut because of problems in the parts supply chain.

The epidemic is accelerating its spread to Europe. Italy is not the only one affected. At present, the number of confirmed cases in other European countries is rising, and cities in the worst-hit areas have even begun to be closed, affecting the automobile industry from upstream to downstream. The outbreak is a huge blow to European carmakers, which will pay a high cost if the epidemic is not brought under control.

Sales in Italy fell 8.8 per cent to 162793 vehicles in February from a year earlier due to the COVID-19 epidemic, according to the Italian Ministry of Infrastructure and Transport. Of this total, FCA sales fell 6.9 per cent in February from a year earlier. Although Fiat and Lancia grew by 4.4 per cent and 2.2 per cent respectively, declines were brought about by Alfa Romeo (down 20 per cent), Maserati (down 41 per cent) and Jeep (down 40 per cent); sales of PSA's Opel brand fell 28 per cent in February, Peugeot fell 4.3 per cent and Citroen registrations fell 12 per cent.

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