Coronavirus outbreak starts to affect automotive supply chains

As the world is watching with bated breath how the deadly coronavirus outbreak is unfolding, the impact the epidemic will have on businesses including the automotive sector will be apparent in the coming weeks. Fiat Chrysler has warned that one of its European plants will be forced to halt production within a few weeks, citing challenges in sourcing parts from Chinese suppliers.

This announcement by FCA highlights the possibility of the wider global supply chains in the automotive sector taking a major hit in the coming weeks. The Financial Times quoted FCA Chief executive Mike Manley saying four suppliers in China had been affected by the outbreak, with one “critical” maker of parts putting European production at risk. “We’ve got one high risk supply at the moment that we have identified,” Manley told the FT. If the situation in China remains the same, FCA will have to halt production in one of its European plants within two to four weeks.

The report also says Toyota, Hyundai, Volvo and PSA have revealed that coronavirus is disrupting their supply chains as well.