Already, Toyota Motor Corp has suspended production of cars in China until at least Sunday. Tesla Inc has been told to halt work at its Shanghai factory.
Fears that the coronavirus will ravage global supply chains rooted in China are spreading fast. For automakers, a hiatus from production in the world’s largest car market may force them to take some needed rebalancing.
Provinces that extended the Lunar New Year holiday period include Guangdong, which accounts for 12.8% of light vehicle production, and Hubei, where the outbreak’s epicenter Wuhan is located. Hubei, in central China, chalks up 9% of Chinese auto production and more than 3.5% of demand. The shutdown will ripple through the supply chain - Hubei is home to hundreds of small- and medium-sized parts suppliers.
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