What is the impact of Coronavirus on the automotive industry?

Toyota : Back in business with limited capacity, Supra's are coming!

After a month's wait, Toyota's four plants in China have been restarted, NHK TV reported on February 24. Work had been suspended by the Japanese manufacturer because of the coronavirus.

The factory in Chengdu City was the last to reopen after those in Tianjin and Changchun (north-eastern China) and Guangzhou (Hong Kong).

However, these factories are currently at only 50% of their capacity compared to the period prior to the shutdown, as they are still experiencing difficulties due to quarantine restrictions on production.

Toyota Motor was forced to postpone twice the reopening of its companies as the situation in China related to the spread of the coronavirus was not improving.

Honda is shutting down operations in Wuhan until March 11th

In response to the Chinese authorities, Honda has announced the closure of two of its motorcycle factories until March 11.

The two Chinese factories in Tianjin and Taicang were already scheduled to close after the Chinese government decided to extend the New Year holiday. Honda has decided to extend the production shutdown for another week as the coronavirus continues to spread in China and around the world.

With an annual production capacity of 350,000 and 500,000 units, the Tianjin and Taicang plants account for about 40 percent of Honda Motorcycles total production in China. While no two-wheeler plant is located in Wuhan province, the decision was made following the confirmation of cases of infection across the country.

The automobile world will also be impacted by the spread of the virus because if Honda has three factories in Wuhan, the epicentre of the epidemic (600,000 vehicles are produced there every year), this is also the case of many French manufacturers (PSA and Renault in the lead). The city is nicknamed "The Chinese Strait" with a production of 1.8 million vehicles per year, all manufacturers combined.

Nissan is also keeping its factories near Wuhan closed.

Nissan said that its plants in Xianyang and Zhengzhou will remain closed after Monday, while the manufacturer had planned to resume operations. No new resumption date has been set.

The two Nissan plants concerned manufacture the X-Trail and the Altima sedan.

In an e-mail, Nissan said its delay was due to a directive from Hubei government authorities asking the companies to keep their operations closed until March 10.

Nissan also reduced production at some Japanese plants due to component supply problems, but said there was no impact on other global plants.

The whole global industry will be disrupted: who is not manufacturing in China today?The Chinese authorities are not allowing manufacturers to resume their activities before March 11th. Before a new extension? Would the risk be even greater than China is willing to let on?