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China closes car plant

China closes car plant



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Automakers and suppliers have shut down dozens of Chinese factories as the government attempts to contain the deadly coronavirus that has sickened thousands and killed hundreds. The latest is Hyundai, which decided on Tuesday to shut down its three South Korea plants due to shortages of a wiring harness that was no longer available from a supplier in China, according to Korean broadcaster Arirang. Kia, the Financial Times reported today, is not affected yet. Hyundai's Ulsan plant is the largest in the world, with an annual capacity of up to 1. These production shutdowns have already affected production of the new Palisade because of a lack of parts, Automotive News Europe reported. Suppliers including Bosch are doing the same.

Content:
  • World's most productive car plant shuts down over China virus
  • China's Loss Can Be Southeast Asia's Gain
  • List of General Motors factories
  • The Decline of U.S. Car Production
  • Coronavirus keeps VW's China factories shut
  • You can't make a car with 99% of the parts. Coronavirus could wreck the global auto industry
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World's most productive car plant shuts down over China virus

The ongoing global shortage in the supply of semiconductors is affecting manufacturing in China and Japan , according to data, with car production among the industries hit. Growth at factories in China has slid to a four-month low, according to figures on Wednesday, as a result of semiconductor chip shortages, combined with supply chain problems and rising raw material costs. The owner of UK car dealerships Evans Halshaw and Stratstone also warned on Wednesday that supply of cars was likely to be restricted during the second half ofSemiconductor manufacturers temporarily shut down their operations as the coronavirus first took hold in early , and their customers cut or cancelled orders, anticipating weaker consumer demand.

However, the opposite happened and shoppers rushed to buy computers and other electronic devices to keep themselves entertained during successive lockdowns.

Fear of Covid has also fuelled car sales, as people avoided public transport. Even though production has been returning to normal, shortages persist, which continues to have an effect on manufacturing in Asia. It takes time to purchase the tools. It takes time to install the tools. The actual manufacturing of the chips takes a couple of months as well.

Hari added that a semiconductor chip can take as long as three to four months to produce. Analysts are warning that the global economy has entered a peak shortage for chips, with tightness in supply expected to ease slightly in the third and fourth quarters of the year.

However, global stock of semiconductors is not forecast to return to pre-pandemic levels untilThe high demand for semiconductors is also expected to fall off as economies open up from lockdowns, and consumers begin to spend their money on holidays and hospitality, rather than electronic devices.

However, carmakers are viewed as the most vulnerable to the ongoing squeeze in supply. Auto manufacturers were among the companies that cut chip orders as vehicle sales fell early in the pandemic, but then found themselves at the back of the queue when they tried to reorder. This article is more than 5 months old. A semiconductor fabrication facility in Chandler, Arizona, US.

There is a world shortage of semiconductor chips. Topics China Japan Automotive industry Manufacturing sector news. Reuse this content.


China's Loss Can Be Southeast Asia's Gain

The cost to businesses around the world could also become severe in the coming weeks. More Videos Coronavirus is disrupting the global auto industry. Chinese 'live-streaming queen' hit with huge tax evasion penalty. China's Evergrande downgraded by Fitch.

SS) will close one of its two factories in China by next March, in the world's biggest auto market where it has struggled to sell cars.

List of General Motors factories

Jaguar Land Rover JLR is to temporarily shut down production at two of its main UK factories because of a shortage of computer chips , in the latest sign of the difficulties facing the global car industry during the pandemic. It is understood the shutdown is scheduled to last at least a week, although the company will continue to monitor its chip supply before committing to a reopening date. Chipmakers in South Korea and Taiwan were taken by surprise by the bounceback in demand after the pandemic initially hit sales, and the complex foundries that make them are expensive to build if orders rise. However, the global nature of the chip shortage has strained carmakers as they compete directly with tech firms for supply. The Mercedes-Benz maker, Daimler, said on Thursday that 18, workers at two German plants would be moved to shortened hours to cope with the shortages. Meanwhile the French carmaker Renault said the industry was at the peak of its difficulties in securing chip supplies but warned disruption could continue for months over the summer. In February he said the Jaguar brand would only sell battery electric cars byDigital speedometers tell you how fast your car is travelling, but they also tell a tale of technological progress. Computer chips are now so cheap they are used for the most mundane tasks, with as many as scattered throughout cars in everything from driver assistance to fuel intakes. Now shortages are causing carmakers to scramble to save semiconductors.

The Decline of U.S. Car Production

The openings include key product startups from Volvo and Tesla. The Chinese-owned Swedish automaker flipped the switch this week on its all-new Polestar 2, a key car in its global electrification strategy. Tesla has reportedly returned to full production at its all-new Shanghai factory producing the Model 3 sedan. As coronavirus cases ballooned in the U.

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Coronavirus keeps VW's China factories shut

Tom Stacey does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. Europeans and other western nations have dominated automotive excellence for over a century. Whether it is the satisfying thud of the door closing on a Volkswagen from Wolfsburg, or the beauty of a Ferrari from Modena, these brands are iconic — and very lucrative for their manufacturers. When we think of reliability, the Germans , and latterly the Japanese , have had it sewn up. But if you rest on your laurels, an upstart will soon be chasing at your heels. Now, however, China is arguably producing the best cars in the world, and on track to dominate auto manufacturing.

You can't make a car with 99% of the parts. Coronavirus could wreck the global auto industry

The extended factory shutdown in China is costing automakers that have idled plants as the government grapples with a worsening virus outbreak that has already claimed more than lives. Automotive research firm IHS Markit expects automakers to lose about , units of vehicle production in the first quarter as local Chinese governments keep plants closed to keep the new coronavirus from spreading. China closes its factories, which were supposed to reopen last week, to celebrate the Lunar New Year holiday every year. Government officials have extended the shutdown to Feb. If the plants remain closed until mid-March, as some industry analysts have speculated, IHS forecasts lost production of more than 1.

of its two factories in China by next March, GAC told Reuters, as Stellantis restructures operations in the world's biggest auto market.

One of the first brands to setup a car manufacturing plant in India , is all set to wind up its operations completely from the country. After stopping domestic operations in , and selling their Halol plant to MG Motor, General Motors India has decided to shut its operations down at their only remaining plant in India, reveals a Times of India report. GM has been using this Talegaon plant near Pune for manufacturing cars for international markets.

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Not only will Chinese production suffer a significant hit due to extended shutdowns, but many manufacturers around the world who rely on Chinese parts are facing production outages. As the following chart shows, the U. It remains to be seen how significant the impact of the epidemic on the global car industry will be, as it depends on how quickly the flow of components from Chinese suppliers can return to the required level. While automakers are gradually reopening factories across the country, those plants located in and around Wuhan remain closed for the time being. Can I integrate infographics into my blog or website?

Ford Motor Co. Manufacturing of vehicles for sale in India will stop immediately, and about 4, employees will be affected, the carmaker said in a statement Thursday.

FCA said Thursday that plants across the U. Meanwhile, Ford, Toyota and Honda also announced plans to extend closures. Ford also said it will extend its closure until April 7. Honda also said it will keep all of its automobile, engine and transmission plants in the U. Operations will resume on April 7, Honda said.

A handful of international automakers with crucial production plants in China have announced they will be returning to work within the next few weeks, as the death toll and the number of new cases from the novel coronavirus continue to soar. General Motors said it expects to resume production in its China plants starting on Feb. GM and its joint ventures in China currently have more than 58, employees at a handful of plants, and sold more than 3.