​Europe presents a brave face over production halts in China and Italy

Renault Wuhan

While Europe-based vehicle makers appear resilient in the face of assembly line disruption caused by the coronavirus shutdowns, a number of factors coming into play that could see production affected over the coming weeks

Production in China is gradually resuming, with a growing number of key assembly and tier supplier plants having restarted production over the last three weeks. In the Hubei province, which is the centre of automotive manufacturing but also the centre of the coronavirus outbreak, operations are now not expected to recommence until at least the end of April, though this remains subject to local authority recommendation; most carmakers will only say cautiously that they are continuing to monitor the situation.

The delay in production in Hubei could go some way to alleviate the struggle underway to secure adequate capacity for outbound parts shipments. There remains a backlog of material to be shipped from the ports and full airfreight services are not expected to return to normal until the end of the March. For the next month European carmakers well be relying almost entirely on airfreight to move parts sourced in China to factories in Europe now running short on supply, though emergency logistics providers have been working hard to expedite critical shipments throughout the crisis.

THIS ARTICLE IS AVAILABLE TO REGISTERED USERS ONLY.

To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today

Join us today for free

AMS Comp Tablet and print phone image 400px

Register free now to stay up-to-date with the latest industry developments, trends, and analysis, to find in-depth reports and intelligence and to connect with your peers.

Your free registration includes:

  • Access to our exclusive content
  • Bi-Weekly enewsletter
  • Option to save articles to a personal library
  • Ability to comment on articles
  • Full access to the digital news archives
  • Ability to manage your profile and communication preferences

Gain access to our exclusive content and features register free today

Non-registered users are able to access two AMS exclusive articles per week. You have now used your allocation.
To continue reading this article and others like it, please SIGN-IN or REGISTER FREE today.