Some carmakers likely to restart China factories after coronavirus shutdown

10 February 2020 - 08:05 By Reuters
Employees at the final inspection line at the Beijing Automotive Industry Holding Co Ltd and Hyundai Motor Co factory in Beijing, China.
Employees at the final inspection line at the Beijing Automotive Industry Holding Co Ltd and Hyundai Motor Co factory in Beijing, China.
Image: Nelson Ching/Bloomberg via Getty Images

Carmakers, including Daimler, Tesla and Ford, are likely to restart production in China on Monday after being forced to shut factories for more than a week after a widespread outbreak of the coronavirus.

However, some have delayed reopenings or flagged a hit to profit. Below is a list of announcements by car companies, in alphabetical order.

BMW said last week production at its plant in Shenyang will resume on February 17.

Daimler said last week it plans to resume passenger car production in Beijing on Monday.

Fiat Chrysler warned on Thursday that disruption to parts supplies could threaten production at one of its European plants within two to four weeks.

Ford Motor said last month it planned to resume production on Monday at its factories in Chongqing and Hangzhou, with joint-venture partner Chongqing Changan Automobile. Ford last week excluded potential impact from its weaker-than-expected forecast for the year, saying it was too early to estimate.

Honda confirmed last week it would restart its three plants in Wuhan, which it operates with Dongfeng Motor Group, on Thursday. Honda said there were no supply chain issues that would impede production.

Hyundai Motor said last week it would suspend production in South Korea due to the outbreak disrupting its supply chain, the first automaker to do so outside China. Most of Hyundai's South Korean plants were shut from Friday, with some production lines expected to restart on Tuesday or Wednesday, a union official said.

Kia Motors said on Monday it would suspend production at two of its plants in South Korea for at least two days due to a shortage of parts, and at a third factory on Monday.

Nissan Motor said last week it was considering restarting production in China at its venture with Dongfeng sometime after Monday. Production in Hubei will start sometime after Friday, it said. Its sales in China fell by 11.8% in January.

PSA Peugeot Citroën, which is in the process of merging with Fiat, said last week its three plants in Wuhan will remain closed until Friday.

Renault said last week its South Korean unit, RSM, would suspend production at its Busan site for four days from Tuesday due to supply chain disruptions.

Suzuki Motor Corp said on Friday it was considering sourcing vehicle components from outside China because the outbreak is threatening to disrupt vehicle production in its biggest market, India.

Tesla's factory in Shanghai will resume production on Monday, with assistance to cope with the outbreak, a Shanghai government official said on Saturday. The company had said the closure would delay an increase in production of Shanghai-made Model 3s. It is also evaluating whether the supply chain for cars built in its California plant will be affected.

Toyota Motor on Friday extended the shutdown of its China factories until Sunday. They were shut down on Sunday. The Japanese automaker operates 12 car and parts factories in regions such as the northern city of Tianjin and the southern province of Guangdong.

Valeo, a French car parts maker, said last week its three sites in Wuhan will remain shut until at least Thursday. On Wednesday, it said it was not experiencing any major disruption to its supply chain in China.

Volkswagen last week postponed restarting production at most China plants in its joint venture with SAIC Motor and the Tianjin plant in its joint venture with FAW Group until February 17. One plant it operates with SAIC in Shanghai and most of the plants in the FAW JV will restart on Monday.