Paris (AFP)

With the coronavirus, "I don't see how we could avoid supply disruptions in Europe in the coming days or weeks" and therefore shutdowns of automobile factories, warns Pierre Boulet, boss of the French equipment supplier Novares.

The multiplication of quarantine and containment measures, with personnel stranded at home, to slow the disease, threaten the learned orchestration necessary to assemble thousands of parts of a vehicle.

After having caused a market collapse and halted the production of many factories in China, the Covid-19 epidemic is spreading in Europe, and "unfortunately, we are going to suffer the combination of the two" crises, estimates Mr. Boulet.

Novares, which manufactures parts for engines, dashboards or the exterior of cars, has a shutdown site in Wuhan, the first focus of the epidemic in China.

The group hopes to restart soon, which would be accompanied by drastic constraints: operators will not be allowed to leave the site, and will therefore have to eat and sleep on site.

The elements transported from this country to Europe are not numerous but may be enough to block production. "In the automobile industry, almost all of the parts are from a single source. This means that when one is missing from a supplier, you cannot buy it elsewhere," continues the business manager.

Due to the long transport times from China, between one and two months by train for example, parts have continued to arrive in recent weeks because, produced before the factories were paralyzed, they were still on their way.

But behind, the logistics "pipe" is empty and the Chinese paralysis will be felt with a lag. "We can last until next week, maybe the next week, but if it doesn't start again in China we will start to defuse, and this will add to defusals in Europe at the same time, so we may have a cumulative effect. "

- Charter planes -

If, as is hoped, production gradually resumes, "we will charter a plane every two days for a month to pass the hole," said the 62-year-old engineer.

The problems, however, are only beginning in Europe. Novares was able to obtain authorization to produce in its Italian factory, even if the country is in quarantine.

The concern now comes from Spain, now the second most affected country in Europe, where 85% of staff at the company's site, in the Barcelona region, are blocked by a containment measure. "We have tried to release the stock and we are in discussions with the local authorities to see under what conditions" production could continue as in Italy.

"It will be less and less obvious to produce what customers are asking for," said the director general, who recognizes that relations between companies "are a little less friendly than before".

"When we cannot deliver a manufacturer, it means that his car will be incomplete. If an aspect part is missing, he can put it in the park and install it afterwards. If it is an engine part, c is much more difficult ", continues Mr. Boulet.

Novares, which generated 1.4 billion euros in sales last year, with 47 factories in 22 countries, forecasts sales will drop 40% this year in China to 115 million euros. Globally, 2020 should have been stable, it "will be negative".

The boss explains being in "crisis mode", with "a much more sustained activity on the phone when almost all trips have disappeared".

He emphasizes that the priority is first of all health: "the most worrying would be to have sick people, even deaths" hence many measures to protect employees. "In the factories, we have spaced out work stations, we have closed showers, changing rooms, canteens."

© 2020 AFP