Tags: China | Coronavirus | coronavirus | global | auto | production

Coronavirus Will Stall Global Auto Production

(Ognjen Stevanovic/Dreamstime)

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Friday, 14 February 2020 02:17 PM Current | Bio | Archive

You can’t produce a car with 99% of the parts.

The cost of business around the world could become severe in the coming weeks due to the Coronavirus. Many parts that are produced in China have pushed manufacturers to rely on their low cost components.

If nothing is getting produced the pipeline of parts will have a dry spot. This is a “black swan” moment in history.

Auto parts could be the first to feel the impact. It takes only one small missing part to stop the production line anywhere in the world. Relocating a second supplier and receiving parts could be easily 4-6 months. China is a major supplier of parts to auto plants around the world — shipping nearly $35 billion of parts in 2018, according to UN data.

About $20 billion of Chinese parts were exported to the United States alone in 2018. Some components impacted: computer chips down to screws and bolts, engine parts and electronics.

Nissan Sues Ghosn in Japan for $91 Million

Nissan Motor Co. has filed suit against former chairman Carlos Ghosn seeking 10 billion yen ($91 million) in payback for claimed damages he inflicted through alleged financial misconduct and fraud Nissan's move adds to the legal stakes following Ghosn’s recent flight from Japan.

Nissan filed the civil lawsuit on Wednesday in Yokohama District Court, in the city south of Tokyo where Japan’s No. 2 carmaker has its global headquarters.

"The financial damages claimed by Nissan are linked to Ghosn's breach of fiduciary duty as a company director and his misappropriation of Nissan’s resources and assets," Nissan said in a news release.

"The legal actions form part of Nissan’s policy of holding Ghosn accountable for the harm and financial losses incurred by the company as a result of his misconduct," the automaker said.

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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You can’t produce a car with 99% of the parts.
coronavirus, global, auto, production
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2020-17-14
Friday, 14 February 2020 02:17 PM
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