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 is the world’s biggest car market, selling more than 21 million vehicles in 2019 alone. Dealerships have restarted opening their doors this month, and 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 auto sales for China has had a global impact due to the virus. When one part is missing from any automobile the production line has to stop. This has impacted almost every automaker.
You cannot 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 have not been impacted yet, Honda and Toyota have planned well. Most manufacturers are concerned about the impact to 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.
Germany’s Daimler is also sharing concerns over the corona virus’ 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 announced Thursday it had established a new task force to address the virus’ impact on the auto Industry.
The New Coronavirus Countermeasures Automobile Council is a Taskforce designed to help Japanese manufactures find alternate suppliers.
Lauren Fix, The Car Coach® is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. Post your comments on Twitter: @LaurenFix or on her Facebook Page.
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