Auto industry hit by COVID-19 outbreak

while the current virus outbreak is
hitting all industries reducing demand and causing supply chain problems in
part one of our two-part series on the economic impact our young junkman takes
a look at the difficulties faced by the auto industry the co fit nineteen
outbreak is hitting South Korea’s automobile sector a number of South
Korean car factories in North America Europe and India have been temporarily
shut down due to the virus some firms have chosen to cut their imports of
automobile parts from Korea a local auto parts manufacturer in Incheon says it’s
local business is surviving despite the outbreak but it is worried about its
overseas business as the virus is spreading fast in other countries we
ship 70 percent of products to the US we haven’t notified from buyers there that
they’re shutting down for two weeks a similar notification came from our
buyers in Brazil the entire market worldwide seems to have stopped the
corona virus is threatening our firms around the world forest manufacturing
lines have been temporarily closed in the u.s. Mexico and Canada until the end
of March and General Motors is closing its North American factories until at
least the end of this month a car requires at least 30,000 parts which
means it needs a massive supply chain the corona virus caused a number of
related plants in China and other countries to shut down it will
inevitably her supply there are problems on the demand side to a report by SMP
global ratings expect a noticeable drop in auto demand and sales have already
fallen dropping by about fifteen percent on-year in South Korea last month the
report says the man will fall in large overseas markets as the virus spreads
across the US and Europe Europe and North America take up more than two
thirds of Korea’s car exports and more than half of Korea’s auto parts exports
the corona virus has dampened overall consumption and caused a drop in
household income due to the economic downturn there is a possibility that the
fallen demand may last longer than expected amid a worsening global economy
the spike assurance automakers are still launching new models
planned but they say the longer the pandemic loss the harder it will be for
them to supply and promote their products you know me Arirang news