China auto market stalls amid CoronaVirus (COVID-19) outbreak
LOS ANGELES: The auto sales in China, as sales fell by 92% in the first half of February, according to the China Passenger Car Association. Many car dealerships in the nation have been closed while much of the population stay home to prevent the spread of the virus. (China’s Auto Sales Plummet 92% This Month as Coronavirus Fears Put the Brakes on New Car Sales)
China is the world’s biggest car market, selling more than 21 million vehicles in 2019 alone. Dealerships are re-opening their doors this month, with the trade organization hopes for increased sales throughout the rest of February. As car sales have struggled, so too has the production of vehicles in China due to the virus.
The decline in China auto sales due to Coronavirus is having a global impact
When one part is missing from any automobile the production line has to stop. The Coronavirus has impacted almost every automaker. You can not build 99% of an automobile. To find another source for many of these items such as wiring, computer screens, and other components would take many months before they will be able to deliver to the factories.
Few brands are escaping impact from the virus. Honda and Toyota have planned well. Most manufacturers are concerned about the impact of production in a few weeks down the road when more of these parts won’t be available. Once the production lines and factories restart it will still take weeks for them to get products to manufactures.
Read More of the Car Coach on Communities Digital News
Germany’s Daimler is also sharing concerns over the coronavirus’ impact, saying it could not only hurt auto sales, but also production and the overall supply chain.
Japan’s Ministry of Economy, Trade, and Industry (METI) announced Thursday it had established a new task force to address the virus’s impact on the auto industry. The New Coronavirus Countermeasures Automobile Council is a Taskforce designed to help Japanese manufacturers find alternate suppliers. (Launch of the New Coronavirus Countermeasures Examination Automobile Council)
Joining the RT discussion on Coronoavirus impact and auto-related headlines is Lauren Fix, The Car Coach.
Lauren Fix on: