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Coronavirus May Cause Shortages

Posted on: 3/10/2020

Automakers prepare for parts shortage following Coronavirus quarantines

Hyundai Motors in South Korea has suspended operations in three of it's domestic auto assembly plants following supply line disruptions of parts and accessories out of China. According to a letter by a member of UAW 598 a number of GM factories also face a threat of parts shortages in Fort Wayne Indiana, Arlington Texas, and Flint Michigan.

French carmaker Peugeot Citroen and Renault has also shut down it's operations in China and evacuated it's employees from China.

The nation of Italy has also had a recent spike of cases and is undergoing it's own regional quarantine. Executives of Maserati, Ferrari, and three component suppliers in the Italian government announced to Automotive News Europe that they would still be open for business on Monday.

In the US there may be an impact on the availability of parts and the car servicing sector within a month, and a impact on US vehicle production in a month and a half, according to a report by Asian automotive consulting firm ZoZo Go. According to an interview between NBC News and Bailo from CAR's there may be signs that some sectors of the new car market may already be slowing, a slowdown for rental car companies for example due to a reduction in travelers following the outbreak.