Automakers plan gradual resumption of China output

Some carmakers were likely to have restarted output at China factories after shutting temporarily due to the coronavirus, media reports on Monday (10 February) said.

A Reuters report said Daimler, Tesla and Ford were “likely” to restart production after being forced to shut their factories for more than a week following a widespread outbreak of the coronavirus.

However, some have further delayed reopenings or announced an expected hit to profit.

The news agency detailed what it knew:

• BMW last week said production at Shenyang [the China Brilliance JV] would resume on 17 February
• Daimler said last week [Beijing Benz] planned to resume passenger car production today
• Fiat Chrysler warned on Thursday disruption to parts supplies could threaten production at one of its European plants within two to four weeks
• Ford said last month it planned to resume production today at its JV factories in Chongqing and Hangzhou with partner Chongqing Changan Automobile. The automaker last week excluded potential impact from its weaker-than-expected forecast for the year, saying it was too early to estimate.
• Honda confirmed to Reuters last week it would restart its three plants in Wuhan, JVs with Dongfeng, this Thursday, 13 February. Honda also said there were no supply chain issues to impede production
• Hyundai Motor said last week it would suspend production in South Korea due to the outbreak disrupting its supply chain, the first automaker to do so outside China. Most of Hyundai’s South Korean plants were shut from 7 February with some production lines expected to restart on 11 or 12 February, a union official told Reuters
• Kia Motors said on Monday it would suspend production at two of its plants in South Korea for at least two days due to a shortage of parts, and at a third factory for Monday.
• Nissan Motor said last week it was considering restarting production in China at its venture with Dongfeng sometime after 10 February. Production in Hubei would start some time after 14 February
• PSA Peugeot Citroen said last week its three plants in Wuhan would remain closed until 14 February
• Renault said last week its South Korean unit RSM would suspend production at Busan for four days from 11 February due to supply chain disruptions
• Suzuki said on Friday it was considering sourcing vehicle components from outside China because the outbreak wass threatening to disrupt vehicle production in its biggest market, India
• Tesla‘s factory in Shanghai would resume production on Monday with assistance to cope with the outbreak, a Shanghai government official rold Reuters on Saturday. The company had said the closure would delay an increase in production of Shanghai-made Model 3s. It was also evaluating whether the supply chain for cars built in its California plant would be affected
• Toyota on Friday extended the shutdown of its China factories from 9 February to 16 February.
• Supplier Valeo said last week its three sites in Wuhan would remain shut until at least 13 February but added, on Wednesday, it was not experiencing any major disruption to its supply chain in China
• Volkswagen last week postponed restarting production at most China JV plants with SAIC Motor and the Tianjin JV with FAW Group until 17 February. One plant it operates with SAIC in Shanghai and most of the plants in the FAW JV were to restart on 10 February.

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