Coronavirus in China: the automotive sector down

South Korean automaker Hyundai has announced that it will stop producing vehicles. MARK RALSTON / AFP

Text by: RFI Follow

The Chinese government has taken a series of drastic measures to stop the spread of the coronavirus, which has infected more than 20,000 people and killed 425 people. The epidemic is starting to affect the automotive sector in China, the second largest economy in the world. Hyundai, the first South Korean automaker must stop production.

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Hyundai has decided to stop all production in South Korea this week due to the coronavirus epidemic. The manufacturer lacks parts for vehicle assembly due to the closure of its production sites in China. He thus becomes the first car manufacturer to be affected outside those of the Middle Kingdom.

Hyundai has 13 plants worldwide, seven of which are located in South Korea. Last year, the automaker sold more than 4 million vehicles. Its South Korean production amounts to around 1.8 million vehicles, or around 35,000 per week.

The coronavirus epidemic in China and coercive measures to curb the spread of the disease have disrupted the supply of wiring components, which are mainly produced in Hyundai assembly lines in China. Hyundai is therefore the first car manufacturer affected outside of China. Last year South Korea imported $ 1.56 billion in auto parts.

The automotive sector at a standstill

Other brands are also experiencing production problems , but inside Chinese territory, such as Nissan. The manufacturer notably has a joint factory with Dongfeng Motor in Wuhan. And plans to postpone until February 14 the resumption of production, stopped since January 23 for the Lunar New Year holidays. But also Toyota, Honda, Volkswagen, Renault and even PSA.

They have all postponed the resumption of production from one week to ten days because of the coronavirus. For example, Renault will extend the closure of its Wuhan plant, which employs 2,000 people, until February 13. Most of the automakers' production sites are located in Wuhan, an industrial city, the epicenter of the epidemic.

Read: Coronavirus: in China, new technologies to fight the disease

(and with agencies)

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  • China
  • Health and Medicine
  • coronavirus

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